The weakness of sterling against the US dollar is exacerbating firmer fertiliser prices in the UK.
Granular urea has continued to trade globally above $270/t, with 10,000t sold recently at $270-272/t fob Egypt. Yesterday’s market report from ADM Agriculture said that fertiliser manufacturers are relaxed about June, with expected demand from Brazil indicating price support into July.
Various Egyptian plant closures scheduled during June for maintenance could also limit supply for Europe, meaning the outlook remains flat to firm, with potential for only minimal change into July.
But sterling’s weakness against the US dollar is exacerbating these firmer prices in the UK. “Replacement values on farm are about £275/t, but any further falls in the pound will increase prices further. However, with some stock still available, values below replacement can be found in some areas,” said Calum Findlay, ADM Agriculture’s head of fertiliser.
The ammonium nitrate (AN) market remains relatively unchanged, with an active spot market. “The generally firmer nitrogen market and the weakness of the pound indicate a firmer new season price than last year for both imported AN and UK AN,” said Findlay.
“CF is giving no indication of a release date for new terms as the grassland market remains busy,” he concluded.