The global demand for fertiliser is set to increase in the coming weeks due to large backlog of buyers who are yet to commit to purchases.
The nitrogen market for the current season from June 2011 to date has been one of mixed fortunes for many buyers and manufacturers alike.
The commodity urea market reached a high of around US$520 (£332) FOB/tonne in mid-November 2011, but then fell to around US$390 (£249) by the end of December. The price has now recovered to around US$420 (£268) and the market is said to be stable, but still US$100 (£64) below November levels. According to the Farmers Guardian, global demand for spring application will now very likely take up any slack in the supply chain, so prices may remain stable until the application period is over.