Urea
Slow demand for granular urea and falling international free on board (FOB) prices have seen local prices continue to fall.
Granular urea was last assessed at A$795-810/t Geelong fca.
Demand is primarily for Queensland’s summer crop.
Market participants indicated granular urea in the $430-450/t cfr East Coast Australia range.
The south-eastern states of Victoria and South Australia’s rainfall was 44% and 45% below the September monthly average, respectively, according to the Australian Bureau of Meteorology (BoM). Soil moisture in parts of the south-east is still below average. Long-term rainfall deficiencies have increased in extent and severity in the south-eastern states apart from Tasmania.
This is likely to impact winter crop yields in southern crops and some growers in southern New South Wales and Victoria are choosing to cut their crops for hay instead of harvesting the grain in hot and dry conditions. Granular urea was applied later than usual this season due to unfavourable rainfall in April and May.
Phosphates
DAP/MAP was assessed at $750/t FOB Townsville.
A small amount of demand for MAP has arisen on the East Coast, but supply may be short going forward because of Chinese exports stopping. Indications were heard in the high A$1,200s/t free-on-truck east coast.
There is no MAP in transit to Australia, according to vessel tracking data from Kpler. Australia imported 60,000t of MAP in October 2024, according to the Australian Bureau of Statistics.
Western Australian import companies are likely organising shipments of MAP, but farmers may not be making purchase decisions until December.
ACCC approves Elders’ purchase of Delta Ag
The Australian Competition and Consumer Commission (ACCC) approved agribusiness Elders’ A$475m acquisition of fellow agribusiness Delta Ag on 9 October.
The decision was made after the ACCC accepted a court-enforceable undertaking that commits Elders to divest six Delta stores in Western Australia.
Glencore secures government aid
Glencore has secured an A$600m aid package from the Australian government to support its Mount Isa copper smelter and Townsville refinery.
Dyno Nobel makes 770,000 t/yr of MAP/DAP at Phosphate Hill using sulphuric acid as a feedstock.
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.