US granular urea falls $20-25/st on weak demand

30 July 2008 16:21  [Source: ICIS news]

LONDON (ICIS news)--US granular urea prices softened $20-25/short ton (€13-16/short ton) on the back of limited buying interest, traders said on Wednesday.

Traders placed price ideas between $795-805/short ton FOB (free on board) Nola (New Orleans), around $20-25/short ton lower than the end of last week.

Flat demand is normal for this time of year, in between applications and into the holiday period.

“There is no demand,” explained a trader. “If the customers feel there is a little weakness then they will stay out.”

Another trader added: “Late July and August is vacation time so there is no big push for anything. It is a really slow period for us.”

The Mississippi river closes in October ahead of the winter, which is likely to stimulate urea buying as traders and customers try to beat the mid-October deadline.

“September will be better as barges have to get north of St Louis before the river closes,” said a trader.

($1 = €0.64)

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By: Carl Roache
+44 20 8652 3214

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