Fertiliser demand has been muted this week, with buyers unlikely to return to the market until more autumn drillings are complete.
This picture, outlined by Calum Findlay, ADM Agriculture’s head of fertiliser, is mirrored across Europe which, like the UK, is well behind on ordered tonnage as we approach November.
“France has still to buy 70-75% of its urea requirements for October to February. This is no small amount, equating to about 750,000t, which will soon require a major logistical feat if left much longer,” stated Findlay in ADM’s latest fertiliser market report
“Following ideal weather India will be back to purchase a further 1.3-1.5 Mt for shipment before the end of the year.
“Granular urea has traded at US$260/t FOB Egypt, US$5/t up on the week, with manufacturers hopeful that future support is now on the horizon.
“Recent strength in the pound has helped to maintain relatively flat prices at the farm gate in the UK, with the risk of tariffs on imported fertilisers now reduced but not yet completely eliminated.
“The current crop 2019/20 situation is causing a lack of confidence to forward buy for the spring, but suppliers are reluctant to change pricing structures at present,” Findlay concluded.