Standoff In Fertilizer Market Continues As Buyers Balk

Wide spread remains between bids and offers.

The sharp break in international urea prices, which are down 20% over the last month, has buyers of all fertilizers increasingly cautious, with a wide spread between bids and offers. That was seen clearly at the Gulf this week, where those looking for urea barges were reported to be bidding $510 a ton, compared to the $600 quoted last week.

The DAP market also appeared to be trending weaker. Buyers at the Gulf were looking to bid DAP barges at $800, with offers around $875, down from $910 last week.

Prices of other fertilizers were apparently holding up better, thought little trade was reported this week. Ammonia prices out of the Black Sea fell $10 per ton last week, while the Gulf was steady. Although demand out of the Plains for winter wheat is reported to be down due to high prices and lower acreage, offers at the Gulf were said to be around $870, compared to trade last week around $845.

Meanwhile, stocks of fertilizer companies continue to be punished. To read Bryce Knorr's complete weekly fertilizer review, click HERE.

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