Urea
Australian resellers and grain growers are buying granular urea only as needed because of ongoing uncertainty in the market and falling prices.
Argus last assessed granular urea at A$830-860/t fca Geelong, the lower end reflecting a return to pre-war levels.
The market is starting to stabilise after over a month of falling prices, suppliers said. But uncertainty in the market remains, especially as the conflict in the Middle East continues.
There are 322,000t of granular urea in transit to Australia including 189,000t across five vessels that successfully transited the Strait of Hormuz in late June, vessel tracking data from Kpler show.
Soil moisture levels are above-average in much of South Australia and Western Queensland, and close to average for the rest of Australia, according to the Australian Bureau of Meteorology’s latest drought statement published on 7 July.
Urea supply for Australia’s summer crop planted from August could be impacted if traffic through the Strait of Hormuz stops again. Australia imported 797,400t of urea in August-December last year and 58 percent of this transited through the Strait of Hormuz, the Australian Bureau of Statistics data show.
Phosphates
There are two vessels carrying a combined 88,000t of phosphorous fertilisers to Australia from Saudi Arabia and Morocco, Kpler data show.
Commentary and pricing supplied by Argus Media
Disclaimer: The information provided in this report is general in nature and is intended for informational purposes only.