The prices of granulated urea do not seem to find a “floor” due to the low levels of imports made by key nations –such as India and Brazil– and this situation is also reflected in the Argentine market.
This week “the market was lively in sales with purchases and dispatch for corn applications, atypical demand for this time of year,” indicates the latest weekly report published by the IF Fertilizer Engineering consultancy in reference to the crops that “resurrected” after of recent rains.
“Due to the situation of low international prices, businesses with withdrawals for later are not being closed,” he added. That is to say: Argentine importers want to see how far the prices of the fertilizer can fall.
When it comes to phosphate fertilizers, most international buyers remain hedged in the short term and perceive that prices could see further downward adjustments.
“Purchasing power remains severely restricted in Argentina, with importers waiting for import permits amid high levels of inflation and a shortage of dollars,” the report states.
“We believe that this dynamic will not change much in the coming weeks, due to the local and international context. Notwithstanding this, importers have time until March inclusive to make supply decisions for fine crops”, he points out.
In the Argentine market, the wholesale price references for granulated urea are around US$590/ton, while MAP and DAP values remain in the order of US$860 to US$890/ton.
Fertilization in corn batches pic.twitter.com/M46jAq1tFL
— Lucas Alonso (@LucasAlonso08) January 27, 2023
@LucasAlonso08’s photo
