US granular urea prices weaken further

26 February 2008 17:07  [Source: ICIS news]

LONDON (ICIS news)--US granular urea prices have softened $11-15/short ton (€7-10/tonne) due to continued lacklustre buying, traders said on Tuesday.

US prompt barge price ideas continued to fall, as buyers remained absent from the market.

Ample urea supply in the US Gulf region had strengthened the buyer position. Moreover, wet weather had delayed the onset of the winter wheat season.

“The weather is keeping people away from the field, they are still wet,” said one trader.

Further wet weather was forecast for the end of the week.

With no business reported, prompt price ideas were assessed at $365-370/short ton FOB (free on board) Nola (New Orleans), a drop of around $11-15/short ton from the end of last week.

Forward prices were pegged weaker around $362-365/short ton FOB Nola for March and $365-366/short ton FOB Nola for April.

Traders were hopeful of an improvement in the coming weeks.

“It should improve when the weather improves and then carry on when the [Mississippi] river reopens,” explained one trader.

($1 = €0.67)

By: Carl Roache
+44 20 8652 3214

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