US granular urea falls $5/short ton on demand lull

26 August 2008 16:21  [Source: ICIS news]

LONDON (ICIS news)--US granular urea prices softened $5/short ton (€3/tonne) early this week on minimal buying interest but look likely to firm again soon, traders said on Tuesday.

Granular urea barges traded several times at $745/short ton FOB (free on board) Nola (New Orleans), pegging the market at $745-755/short ton FOB Nola.

August is traditionally a slow season in terms of sales. With buyers under no pressure to purchase, prices have steadily fallen.

“There is weakness so they [buyers] do not want to buy,” said traders.

However, traders said purchasing for winter wheat application would start very soon.

Added to this, US urea inventory levels were fairly low and Chinese urea exports look to be further restricted through to the end of the year.

A combination of these factors will force US urea prices up soon, said traders.

“There is a lot of buying to be done from now to mid-October,” said a trader.

($1 = €0.68)

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By: Carl Roache
+44 20 8652 3214

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