CF withdrew terms twice last week, in what was a confusing period, prices were initially pulled on Tuesday. This mainly impacted on their N:S & N:P:K compounds, as when republished A.N for November was unchanged, then N:S & N:P:K compounds were only available for January delivery. Compound production has been a problem for CF since the new season began in late May. Orders which were due to have been delivered in the June to September period have still not been completed. Terms are likely to be removed again early this week.
UK Urea markets look like moving firmer this week. Demand has started to pick up, which means merchants and shippers are working through positions, this leads to new purchases which will reflect replacement prices. The UK has been trading below these levels for many weeks, when customer confidence and ordering is low that can often be the case, this does not remain forever.
Phosphate & Potash
Prices for MOP & TSP are stable at present, Phosphate has the most short term potential to firm, January could be a key month for Potash as some large international contracts are negotiated and could set the tone for Q1 of 2021.
DEFRA Urea Consultation
Within the fertiliser industry, there has been talk of potential legislation around Urea fertilisers for many years. Brexit and more recently Covid has possibly delayed any government activity in this area. This changed on Tuesday 3rd November as DEFRA formally published its consultation on reducing ammonia emissions from urea fertilisers. The issue with ammonia is two-fold; firstly, the impact on human health and the association with the formation of particulate matter in the atmosphere we breath, secondly the negative influence on delicate eco-systems from nitrogen enrichment. Three options are set out in the consultation document :-
1.The outright ban on all urea-based fertilisers, including UAN solution (DEFRA’s preferred option)
2.Legislation to require the use of urease inhibitors.
3.To only allow the spreading of Urea based fertilisers between 15 January and 31 March.
Opinions are very strong on all sides of the argument, and all the options have the potential to produce uncomfortable and difficult outcomes for growers and merchants. We will no doubt return to this topic soon. You can have your say and read the background information by going to:-
The deadline for responses is 26th January 2021.
Economic Data as at close on Friday 6th November v (30th October 2020) £ = $1.3195 ($ 1.2936) £ = € 1.1100 (€ 1.1104) Crude Oil = $ 40.32 ($ 37.64) Natural Gas = $2.85 ($3.30) Please treat pricing on graphs as a guide, please use quote request form for an up to date price.