Keeping an eye on the global Fertiliser market
- By: "Farm Tender" News
- Cattle News
- Aug 10, 2018
- 825 views
- Share
As preparations for the coming harvest begin to work their way up the priority list, it’s a good time to check in on the global fertiliser market is to see if there will be any impacts on your pre-harvest decisions.
Global urea prices have moved up A$60 per metric tonne since the middle of May as producers continue to be comfortable with production versus demand.
India absorbed the urea tonnes late in quarter 1 of 2018 and demand from South East Asia, Brazil and Australia since late April has underpinned the steady rise of prices. India last week issued a tender for another 500,000-700,000 metric tonnes of urea for prompt shipment with most of the supply coming from Iran, potentially leaving India requiring more which will create strength in pricing for another six to eight weeks. China remains out of urea exports which will likely put some floor under prices for the remainder of 2018.
Major phosphate producers including OCP Morocco, Mosaic USA and Ma’aden Saudi Arabia continue to push prices north in line with rising core ingredients, ammonia and phosphoric acid.
India and Brazil are active buyers with India viewing imports more cost effective than producing domestically due to high phosphoric acid prices.
India and Pakistan are indicating further buying through until September. Prices have firmed A$50-60/mt since early May and the outlook is for further firmness in pricing for 2018.
Meanwhile, the main news is that major potash producers including Canpotex Canada, BPC Belarus and K+S Germany are asking for a A$60/mt price increase for the next Indian long-term potash contract. This is a similar mechanism applied to China. India has countered with A$30/mt so we expect to settle somewhere in the middle, which will increase domestic prices by around A$40-$50/mt from where growers were buying in early 2018. Expect these prices to remain in place until the next review in early 2019.
If you would like to know more about the global markets and how CBH Fertiliser can help with your pre-harvest needs, our team will be at the coming field days at Mingenew, Dowerin and Newdegate.
We’re looking forward to seeing you, and you will be able to book and contract with us on the spot.
Also, we have another exciting cricket incentive this year.
When you contract your 2019 fertiliser needs with us before 31 October, you will go into the draw to win a Perth Stadium Cricket Experience. This year we will be hosting the winners in a private suite at the Australia vs India second test match.
For more information, head to www.cbhfertiliser.com.au
Share Ag News Via