US granular urea barges weaken $10-15 short/ton

21 February 2008 17:25  [Source: ICIS news]

LONDON (ICIS news)--US granular urea buyers have remained out of the market, causing prices to soften $10-15/short ton (€7-10/short ton), traders said on Thursday.

The US barge market continued to be bearish, with prompt prices assessed softer at $380-385/short ton FOB (free on board) Nola (New Orleans), a drop of around $10-15/short ton FOB Nola from the end of last week on muted buying interest.

Prices on the swaps market were lower at $370-372/short ton FOB for March.

Cold and wet weather is delaying the start of application on winter wheat, prompting buyers to hold off purchasing. Freezing rain is forecast for the coming days.

“Our season has been pushed back and we are flat at the moment,” said one trader.

Opinion was divided over when buying would restart.

“They [buyers] will come back before the end of the first week of March,” said a trader. “They do not need tonnes until 15 March when the Upper River system reopens.”

However, another trader said any future buying would be determined by upcoming weather.

“I am not sure when it will pick up,” said the trader.

“We thought the season was going to happen two weeks ago. Until this weather clears we are not going to see anything.”

($1 = €0.68)

By: Carl Roache
+44 20 8652 3214

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