At the time of writing, the market is awaiting the outcome of the Mumbai based company RCF (Rashtriya Chemicals and Fertilisers Ltd) urea tender. Demand is thought to be up over 1M tonnes from the same period as last year due to favourable monsoons. India are said to be wanting to buy between 1-1.5M tonnes in this latest move, however it is expected that China will not be able to supply much if any tonnage for two reasons. Its own domestic demand is strong at the moment, and production is understood to not be back at full capacity following the Covid19 crisis and the on-going dispute with Australia over coal which is still used as a feedstock for some older plants.
With Urea replacement costs rising in anticipation of Indian tender results, both CF & Yara took the opportunity to withdraw terms late last week. It is not clear at this stage if there is still availability for Jun and July, if not the next available month for delivery could be October. Earlier offers at the start of the new season put October delivered U.K produced A.N at around the £ 205 level. UK price levels are still significantly below European markets, and any increase is still likely to leave prices below the lowest point of the 2019 / 20 season, which was around the £ 230 level.
Yara – Grow The Future
Yara’s UK Agronomy team have begun a series of weekly podcasts entitled ‘Grow the Future’. The first of which is available to listen to now. The subject is ‘Thoughts on next season’s nitrogen purchase’ and covers topics such as not forgetting about Sulphur, and what source of Sulphur to consider plus Nitrogen Use Efficiency. To listen to Natalie Wood Yara’s UK Arable Agronomist discuss these issues, click on the link below:-
BASF Real Results Virtual Farm
With none of the usual agricultural technical events taking place this spring and summer, it is good to see manufacturers stepping up with innovative on-line content. From this Monday 22nd June BASF are launching Real Results Virtual Farm, which brings experts and industry specialists together to identify and overcome issues that erode profits. BASF Real Results Virtual Farm is a living breathing farm available 24 hours a day to explore as and when you like. It allows you to take virtual tours attend live events and ask questions in real time. The first such live event will be on Thursday 25th June on protected urea. For more details go to:-
Economic Data as at close on Friday 19th June v (12th June 2020) £ = $1.2355 ($ 1.2539) £ = € 1.1049 (€ 1.1140) Crude Oil = $ 42.60 ($ 38.99) Natural Gas = $1.68 ($1.73) Please treat pricing on graphs as a guide, please use quote request form for an up to date price.