26 July 2010 02:50 [Source: ICIS news]
SAN ANTONIO (ICIS news)--US granular urea barge prices could hit $300/short ton (€234/short ton) over the coming days due to tight supply, traders said late on Sunday.
The latest deal saw a prompt urea barge trade at a reported $294/short ton FOB (free on board) Nola (New Orleans), several trading sources said on the side lines of the annual Southwestern Fertilizer Conference in San Antonio, Texas, USA.
This was a notable increase from last week, when prompt barges traded as high as $281/short ton FOB.
“Over the next few days, we could see $300/short ton FOB,” said a trader. “I think we will see the producers very bullish.”
Another trader was even more certain saying: “It will be $300/short ton FOB very soon.”
Tight supply has been the primary cause of the recent increases seen in the ?xml:namespace>
Granular urea barges prices have climbed sharply from the mid-$250s/short ton FOB at the end of June.
With the supply unlikely to ease in the short term, this upward trend looked set to continue, the traders said.
“It is tighter this year than it has been in a while,” added one of the traders.
($1 = €0.78)
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