Gleadell Viewpoint Autumn 2011

GLEADELL AROUND THE COUNTRY … IN YORKSHIRE

… IN THE NORTH-WEST

By Appointment to her Majesty The Queen.

Supplier of Quality Seeds Gleadell Agriculture Ltd Lincolnshire

YORKSHIRE OFFICE

NORTH-WEST OFFICE

Full Sutton,

AUTUMN 2011 VOL 9, ISSUE 2

York YO41 1HS

www.gleadell.co.uk

The Airfield,

Rural Business Centre, St Michaels Road, Bilsborrow, Preston PR3 0RY

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... AT IMMINGHAM

Planning for the future

… AT AVONMOUTH

It is commonly accepted that the late 1980s and the 1990s were not years where UK Agribusiness covered itself in glory.

… IN LINCOLNSHIRE

A lack of investment in facilities and, more importantly, a lack of investment in people, were the order of the day as profits were hard to make and reinvestment seen more of a risk than a necessary reinforcement for the future.

GRAIN EXPORT FACILITY AT RYE OPENS UP YET MORE MARKET OPPORTUNITIES FOR GLEADELL’S SOUTHERN GROWERS

This situation resulted in rundown grain LINCOLNSHIRE OFFICE Lindsey House, Hemswell Cliff, Gainsborough, Lincolnshire DN21 5TH

“After refurbishment and investment – including a brand new grain store for Gleadell’s exclusive use we have started a new export programme from Rye to give an additional outlet for the farmer customers of our southern office.”

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Steve Harrison, regional manager

... AT GREAT YARMOUTH

storage and processing facilities - and also a clear talent gap in the workforce employed throughout the industry. How things have changed in the last few years!

At Gleadell we decided in 2005 that the only way to fill the talent gap would be to ‘grow our own’ and, therefore, we decided to recruit young people and to give them the necessary training, experience and the opportunity to become crucial members of our team. Many of these younger colleagues now hold important

roles within Gleadell and we continue to see this as the right way to proceed. This year alone we have taken on five young people in various departments within the company.

Today, agriculture is seen as an attractive and interesting career option for many graduates and young professionals. It is even attracting trading talent from ‘The City’ as agricultural commodities become far more widely traded by investment and hedge funds alongside the expanded commercial operations of the large grain trading organisations. As an industry, it is vital to continue this policy in the years ahead, when food production will become even more important than it is today.

So Gleadell will continue to look to employ able young people who will ensure that our company, which was founded in 1880, continues to provide the best services to UK farmers and consumers for the years to come.

David Sheppard, managing director, Gleadell Agriculture

Gleadell Oilseed Rape Pool Result - Harvest 2011 … IN THE SOUTH

… IN THE MIDLANDS

… IN EAST ANGLIA

SOUTHERN OFFICE

MIDLANDS OFFICE

EAST ANGLIA OFFICE

The Old Dairy, East Farm, Codford St Mary, Warminster, Wiltshire BA12 0PG

6 Luffenham Barn, Edith Weston Road, Lyndon, Nr Oakham, Rutland, Leicestershire LE15 8TW

Beacon House, Turbine Way, Swaffham, Norfolk PE37 7HT

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The season has been surprising and challenging, with conflicting fundamental outlooks and prices being influenced heavily by hugely volatile outside markets.

The outlook in the early spring looked well and we took a ‘little and often approach’ to put a base into our Pool sales. We started to get concerned about the drought in April and, having already locked

into a good percentage of the Pool, waited to see how crops would react to the prolonged dry spell.

Once the combines started to roll, it quickly became apparent that the crop had defied all expectations with bumper yields leaving most happily surprised. With the prospect of an all-time UK record 2.7mln/t crop, we sold the balance of the Pool into the developing export demand.

POOL PRICE PAID £352.50 EX-FARM - POST COMMISSION AND BEFORE BONUSES 450

Contents MARKET PROSPECTS Gleadell's traders discuss market prospects for feed grain, milling wheat, oilseed rape, pulses, oats and the organic sector.

FOCUS ON NULL-LOX MALTING BARLEY

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Non-defaultable contract, trials success and end user reactions to Null-Lox.

FOCUS ON SPRING SOWING

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Spring sown pulses and spring barley with a look at the varieties on offer from two of UK's leading plant breeders.

GLEADELL XTRA

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Bringing the latest information to our farmer customers - plus the Gleadell app for Blackberry, iPhone and Android.

FOCUS ON FERTILISER

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Gleadell fertiliser import facilities are ideally placed to receive product, allowing them to service increased UK demand.

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www.gleadell.co.uk DISCLAIMER: Prices quoted are indicative only at the time of going to press and subject to location and quality. Gleadell Agriculture cannot accept liability arising from errors or omissions in this publication.

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GLEADELL AROUND THE COUNTRY

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A new export programme from Rye gives an additional outlet for southern office farmer customers.

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HEAD OFFICE Lindsey House, Hemswell Cliff, Gainsborough, Lincolnshire DN21 5TH

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MARKET PROSPECTS

Pulses

Feed Grain Global 2011 wheat production is projected at 681mln/t, boosted by a rebound in production from the Black Sea region and improved harvests in the EU following ‘drought-stricken’ concerns in the spring. Usage is projected to grow to record levels both for feed and industrial, leaving global stock levels at a comfortable 202mln/t, albeit with only 65mln/t held by the major exporters.

EU soft wheat production, projected at 129mln/t, is similar to last year’s production. Adverse weather has resulted in quality issues, especially in Germany, and lower production in France. Spanish harvests have been boosted by ideal weather, reducing their import requirements. Feed usage will increase as wheat is seen to replace higher-priced barley and corn in feed diets.

Despite a higher acreage, variable yields should result in a UK wheat crop of around 15mln/t. Wheat quality is reported as slightly improved on last year with good specific weights and protein levels. With defra revision of the past two season’s usage, this should result in an exportable surplus of approximately 2mln/t against 2.6mln/t export this season.

In summary, feed grains are a two-tiered affair with a historically tight US corn supply and demand and ample wheat supplies. Current dry conditions in key producing areas for new crop plantings should support the market fundamentals.

However, fundamentals are currently at the mercy of macroeconomics, with uncertainties over the Euro debt crisis and growing concerns over global growth leading to commodity liquidation of speculative longs. Once the financial markets calm down grain fundamentals should return and market direction should be easier to predict.

David Woodland, trader

UK bean plantings, as declared by official sources, are down from 2009-10 by at least 20% for both winters and springs. Put into the equation the drought in the eastern part of the country, balanced by near-perfect conditions in other parts of the UK, and the best estimate is a combined production of 400,000-450,000 tonnes, some 200,000 tonnes down from the peak.

With feed bean prices at around £192 ex-farm, the demand from the UK and continental feed producers has somewhat followed production with demand dropping well off. This is causing a total lack of interest in the produce both from domestic and export buyers.

On a positive note, the ever-increasing population and demand for cheap sources of protein to the Middle East is a constant. The Egyptian market alone requires 300-350,000 tonnes of good quality beans suitable for human consumption.

After we take out local production and carry in stocks, this puts the UK in a very good position to compete with the French, providing we can price competitively. Long-term prospects are still good, and there will be a market to the Middle East, with UK beans required for that market.

Ian Skinn, pulses trader

Milling Wheat Another UK harvest is now safely gathered in and samples have been taken and assessed. The result would suggest that we have one of the best quality crops for some time, with high proteins and bushel weights a key feature of the year. Samples of breadmaking wheats will generally all meet the requirements of the domestic millers, and we are also seeing export interest from destinations that would normally be more focussed on French or German origin qualities.

However, with Russia back in the export market, the US and French have been largely priced out of all but their captive traditional homes and this has taken a lot of the heat out of the international prices.

Oats The run up to the 2011 UK oat harvest created an air of uncertainty with reduced plantings, dry spring weather conditions and low carry in stocks. But the final combination of rain and sunshine in England saved the day with average to good yields and quality that surprised many in the

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Weather issues in Germany during August affected the quality of their B wheats and, as a result, we have seen some brisk export interest from German millers for lower grade UK milling cargoes for them to blend.

This has been a useful outlet for some of the mixed quality lower grade hard and soft milling types.

Unfortunately, it isn’t all good news with the good quality undermining the milling premiums. Full spec Group 1 types are down £10-15 from pre-harvest levels.

But, for the time being, the market appears to have settled down at around current premiums.

Going forward, we expect to see decent underlying demand for all grades of wheat - and we are hopeful that we will be able to pay premiums over feed for many grades of quality wheat.

Jonathan Lane, trading manager

milling industry. When the oats in Scotland were eventually harvested, they were mainly of milling quality and this has taken the immediate pressure off the market.

The UK oat market is expected to remain tight, even with the compound industry being priced out of this commodity. The expected surplus of milling standard oats from Sweden and Finland could be reduced due to the wet harvest which produced ranges of quality and colour.

Oilseed Rape UK rapeseed yields have been extremely good this year and most growers appear to be pleasantly surprised. As a result, we have revised our UK crop estimate up to 2.5mln/t, giving us a significant exportable surplus of circa 600,000 tonnes for this marketing year. Demand for rapeseed remains strong in mainland Europe -

On the back of a recession, the organic market has endured a slow start to the season and prices have dropped from pre-harvest highs.

World supply is back on track after the problems of last year, and imports are more readily available.

As ever, premiums will be dependent on the quality available - and it is vital that growers are aware of what they have on farm. We are happy to test your samples.

The organic harvest appears to have seen a very different quality outcome from conventionallygrown crops. Early results are showing a good amount of malting barley and there are also some good milling oats.

On the other hand, milling wheat samples are not quite as good, and anything with quality is showing a worthwhile premium over feed.

Tony Kenny, organic trader

The autumn oat plantings in England are expected to fall yet again as the sowing conditions favoured substantial acreages of wheat and oilseed rape.

This could keep the 2012 oat price in the upper range as the feast or famine cycle continues.

However, this reduction in plantings could be partly negated by an increase of spring oats in Scotland where spring barley price levels will hold the key to farmer intentions.

Robert Leachman, oats trader

Growers and potential growers of Null-Lox spring malting barley will benefit from Gleadell’s newly announced non-defaultable contract for 2012, while 2011 trials show that yields from existing and new Null-Lox varieties equal or exceed conventional varieties.

although this has not been helped by a large reduction in German production, down from 4.8mln/t to less than 4.0mln/t.

Rapeseed prices fell sharply in early August but have subsequently recovered to

NON-DEFAULTABLE CONTRACT The key to the success of Null-Lox has been to ensure that growers don’t just get an attractive yield, but also get an attractive return as there is a guaranteed end-market backed by

brewers and maltsters.

Gleadell can now offer a 2012 Null-Lox spring malting barley contract - and a pool contract - that are both non-defaultable on both quality and yield and are currently available for limited tonnages this coming season.

In addition to the non-defaultable 2012 Null-Lox contract, there are a range of contracts to give growers a choice. For example, a ‘premium over wheat futures’ contract which allows the grower to fix some or all of their tonnage whenever they think the futures price is right for them.

an extent. Throughout this period we have been trading a largely inverted market which has eroded any forward carry. There is no doubting rapeseed demand in Europe this season, but the market is not encouraging sellers to come forward for the New Year.

Rapeseed prices have been well supported with the market well aware of European

Organics

FOCUS ON NULL-LOX MALTING BARLEY

Independent trials of 15 varieties show the current and future potential of Null-Lox varieties.

crush demand, but we have started to see agricultural commodities lose their shine in

TRIAL RESULTS

recent weeks with investors moving out of

The market success of Null-Lox is underpinned by the agronomy of current and new varieties.

Results of the 2011 trials based on two independent trials of 15 varieties show the current and future potential of Null-Lox varieties.

the main drivers such as corn and soybeans.

We would expect to see a bigger acreage of winter rapeseed being planted this autumn given excellent yields in the UK this year, big prices and strong demand going forward.

The macroeconomic situation continues to influence our markets more than ever and it would appear that this is how it’s going to be for some time to come!

Rapeseed markets/prices will be driven by three key factors in the short term: weather - especially in the Black Sea countries, the USDA report in October, and ongoing macro economic activity.

Willie Wright, oilseed trader

In the Midlands trial, the Null-Lox variety Cha Cha was 5% higher-yielding than Tipple and 7% above Concerto, while Quench and Propino both did well, with a similar yield to Cha Cha. In the Southern trial, the Null-Lox variety Charmay was again higher-yielding than both Tipple and Concerto and the two top-yielding varieties were both Null-Lox. Null-Lox varieties looked very strong throughout the growing season as they are very vigorous and extremely quick in their establishment. They are also early to harvest and are safely in the barn well before the bulk of the spring crop.

END MARKET DEMAND The end market demand was underlined by the reaction of a group of thirty-five of the biggest brewers in the world, along with major EU and UK maltsters and distillers, who joined in the annual Gleadell malting barley tour through Wiltshire and Hampshire.

The visit included Gleadell trial plots as well as commercial fields, and the Null-Lox spring malting barleys were of great interest to all present as the area grown expands year on year.

The new Null-Lox varieties were head and shoulders above all of the other new spring barleys with Chief, Chapeau and Cheers looking the pick of the crop – and Chief the stand-out variety.

The brewers, maltsters and distillers present commented on this and all wanted to know if they could buy and process Null-Lox. A key advantage for brewers and consumers alike is that beer made with it stays fresh for a longer period of time, so consumers will be able to store their beer longer.

Also it tastes better in the glass.

One of the growers visited during the tour remarked that last season his Tipple yielded an excellent 7.5t/ha, but the Charmay out-yielded it with a massive 8.15t/ha.

SUMMARY Both the new contract, the trials results and end user interest underline the significant benefits for spring malting barley growers. Demand from Carlsberg and Heineken for Null-Lox will be increasing again for the 2012 crop with Null-Lox barley malted in both East Anglia and Yorkshire as well as exported to the continent as an important part of Gleadell’s 2012 export programme.

Stuart Shand, sales director

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FOCUS ON SPRING SOWING

FOCUS ON SPRING SOWING We have certainly seen an

Gleadell invited two leading plant breeders to take a look beyond next year’s spring sowing to the wheat varieties that will be in the frame for 2012.

Andrew Newby - KWS

increase in planted areas of winter oilseed rape and wheat, and this will leave a

“Some would argue that the plethora of high yielding wheat varieties in the market muddies the decision-making

potentially smaller area for spring

process. However, look at it another way, the plant

cropping. However, there are a number

breeding industry and Recommended List system has delivered diversity with all the bolt-ons you need,” says KWS commercial director, Andrew Newby.

of profitable options available to growers which will enable them to lock into good returns along with additional rotational/nutritional benefits.

Chris Guest, seed manager

A group of the biggest brewers in the world, along with major EU and UK maltsters and distillers, joined in the annual Gleadell malting barley tour.

Spring Barley

Spring Peas

Gleadell can offer buyback opportunities on all these varieties.

Our Null-Lox spring barley varieties and contracts have already been covered within this issue of Viewpoint (see page 3), and this is certainly something worth considering for all growers of spring barley. Seed availability of both the Null-Lox varieties and conventional varieties will be limited this year. Therefore, we would urge growers to cover their requirements sooner rather than later.

The key to success with spring peas is growing a specific variety for an end market - and the aesthetics are as important as the standing power/yield and disease resistance in this case.

The next sector is the white pea. In the past, this type of variety was simply grown as a feed type.

However, there are now a number of different uses for the varieties. The variety of choice in this sector is currently Gregor - it has a bold sample and good standing power. White peas are currently maintaining a premium over large blues for a number of uses including splitting and skinning.

Starting with marrowfats, Sakura and the tried and tested favourite Kabuki, look set to remain firm favourites this year. Both varieties perform well for the grower and, importantly, for the end user, maintaining their green colour along with a big, bold sample. Sakura is now coming to the forefront with a slightly higher yield than its rival.

However, Kabuki will still remain strong and offers good standing power and early maturity.

The white pea variety of choice is currently Gregor - it has

Spring Beans Fuego remains the favourite variety with the majority of spring bean growers. The variety has been around for a number of years and continues to perform on farm. However, there are some new varieties that will be available for planting at a commercial level in the coming spring.

These are Fury (from LS Plant Breeding) and Pyramid (from Limagrain UK). Taking 2011 provisional results from PGRO trials, Fury will be approximately a 2% yield increase over Fuego and Pyramid 1% higher over the 5 year mean.

Some C2 seed was available last spring, so buyers will see some parcels of both of these varieties this season to give the opportunity to

Fuego remains the favourite variety - however, the new varieties Pyramid and Fury will be available for planting in the coming spring.

But at the same time, growers need to be aware that at a time of market volatility and uncertainty in the financial world, they should also consider looking outside the feed sector to the soft Group market for a range of more specific market opportunities.

While the taller later wheats such as Invicta suited 2010, with a better specific weight, earlier maturity and midge resistance, KWS

Simon Howell - RAGT

A variety to keep an eye on for the future is Neon – this is the highest yielding marrowfat on the PGRO list and is in its first year of provisional recommendation. End users will be trialling this variety over the next couple of years, and it certainly looks set to create good interest.

evaluate them. With the yield increase, this will certainly be of interest to growers - particularly when looking at the increase in gross margin achieved by increasing yield.

Using KWS varieties as examples, KWS Santiago continues to perform well and is now firmly established, with Conqueror and Oakley at the head of the feed wheat pack and alongside varieties such as Grafton. It is then a case of picking the right hard feed to meet your field and agronomic needs.

a bold sample and good standing power.

Finally, moving to the large blue types, Prophet has been the mainstay of this sector for some time. However, a new variety called Daytona has already created a lot of interest. Daytona is in its second year of provisional recommendation and yields have been very good. It is early to ripen with excellent standing power, which is of paramount importance for growers, along with solid allround agronomic features. Also, Daytona does not suffer from the brown staining trait currently blighting some other varieties. This ensures that the best price is achieved for the crop.

Large blue varieties are attracting excellent premiums this season and buyback opportunities are available for next year.

“RAGT looks set to take over the Group 3 market with Warrior already firmly established, Tuxedo growing in popularity, and the newcomer Torch,” says Managing Director, Simon Howell.

Warrior was recommended in 2010 as a cheap to grow/low input variety. It is also CTU tolerant. It has started to develop a loyal following and is now widely grown on farm. Despite the challenging growing conditions that the 2011 season presented,

Target is a great partner with different characters to reduce risks. And looking to 2012, KWS Solo will add more range and scope to the Group 4 sector bringing a new Istabraq type to the industry.

Conqueror is at the head of the feed wheat pack

KWS Solo was the highest yielding candidate last year and has had a strong performance again this harvest. It looks set to bring soft

endosperm wheat yields onto a par with that being secured for Oakley, potentially suiting the distilling and uks sectors.

Solo will add range and scope to the Group 4 sector

Those whose specialist focus is the breadmaking sector will also find new types to the fore that have the potential to deliver protein with less yield dilution. Stiff strawed, early ripening candidate, KWS Saxtead has a very high protein for its yield. “It too brings choice to a market that demands and needs better selectivity for every situation,” he says.

Warrior recorded its best results ever.

Gleadell are currently offering buybacks for both export and domestic markets.

Tuxedo is agronomically very strong - it is one of only four varieties on the RL to score a 7 or more for Septoria tritici - and is CTU tolerant.

A key feature of Tuxedo is its excellent Hagberg, linked to sprouting resistance which has been of real benefit to growers this harvest, particularly in the north and west of the country where harvest conditions were challenging. Tuxedo is the first variety since Robigus to fulfill the requirements of all Group 3 end markets and, with attractive premiums available through buybacks with Gleadell to supply Premier Foods, Tuxedo is a profitable option for growers and millers.

attractive option for growers. It has already found favour with end-users and is definitely one to watch for the forthcoming year.

A strong interest is developing in Group 4 variety Relay (parentage Gladiator x Vector), also up for recommendation in December. It has the ability to overcome every hurdle presented to today’s growers, with good yellow rust resistance, high specific weight, great second wheat yields, CTU tolerance and the best available resistance for Fusarium (7).

Relay has phenomenal tillering ability, which comes from the Vector parentage and is of great benefit in terms of out-competing grassweeds, particularly blackgrass. Relay brings a new diversification in genetics to the current high yielding feeds and looks to improve on the reliability and consistency of Gladiator.

Torch has given a sensational performance (105%) in trials this year and will be up for recommendation as a Group 3 in December.

Yields are 1% above the leading feed variety JB Diego. Torch has the added advantage of midge resistance and early maturity, making it an

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FOCUS ON GLEADELL

GLEADELL XTRA – bringing the latest information to our farmer customers Gleadell Xtra is a secure website providing Gleadell’s farmer customers with the latest information to assist in the management of their farm contracts. The website is updated daily to show grain, seed and fertiliser contracts, movements, planned movements, samples and a full payment history. It is very easy to use with clear menus and links to the various screens.

Stage 1: There are options to view either grain contracts or seed and fertiliser contracts where you will be shown a summary of all your contracts for each harvest year including the commodity, specification, movement periods, prices with payment terms and a summary of all the movements.

Xtra is an online version of the Gleadell trading and accounting system where contracts, samples and movements are all directly updated to provide accurate and up to date information to benefit all users.

Gleadell’s Farm Traders also use Xtra so they will be

Stage 2: When a contract starts moving it is very useful to see the actual weights and the payable value for all the movements. The screen gives you complete analysis - including any claims and levies - and the transactions number which will also show if it has been paid.

looking at the same information as farmers, making the on screen is also available in report format so that it can be printed if required.

When you login, Xtra shows all the updates on your account since the last login - including any new samples and tickets - to ensure you do not miss anything. You can also open a report to show any planned movements Dave Tindall, trading accountant

The Gleadell App

Stage 3: It is important you are aware when you will be paid for your grain, so we have a full transaction history which shows all unpaid invoices with their due dates and contract number. There is also a full payment history available by date or contract to provide all the information you need. You can also see when your seed and fertiliser invoices are due for payment so you can manage your cashflow accordingly.

Another way that we can bring the latest market and other information to our customers.

It displays up to the minute CBOT soybean, soymeal, soyoil, corn and wheat prices as well as LIFFE wheat and Matif wheat, oilseed and maize prices - plus Energy and FOREX rates. In addition, there is company and other agricultural news as well as Gleadell’s wheat, rapeseed, fertiliser and seed market reports.

Blackberry: Using the Web Browser on your Blackberry, navigate to the following web address and download the app: www.gleadell.co.uk/app When the download is complete, you will find the app in your Downloads folder. iPhone/iPad: Go to the App Store and search for 'Gleadell'.

Android: Go to https://market.android.com/details? id=com.breeze.GleadellAndroidApp. To find and install the application, open the Market application on your Android device, select the search option and search for 'Gleadell'.

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Over the last six months, higher food prices have generated unrest in several developing countries with one concern being that high volatility of prices will increase the risks associated with farming. As a result, farmers are more reluctant to invest in higher productivity. But the rewards of higher agricultural commodity prices witnessed today have provided farming worldwide with the incentive to improve productivity.

One result of strong commodity prices is intensification and higher fertiliser applications.

So fertiliser demand continues to increase and world demand has seen a stronger than anticipated recovery in traditional markets and a sustained level of consumption in emerging economies like Argentina, Brazil, China, India and Indonesia.

This trend upwards in demand is likely to continue between 2010-2015, with several new plants already under construction. Once on stream, the world Urea capacity will increase by another 45mln/t. The main bulk of this increase is to service agriculture - with demand for Urea forecast to increase globally from 148mln/t in 2010 to 172mln/t in 2015, representing a growth of over 3% per annum.

situation clear to everyone. All the information shown

over a selected date range.

FOCUS ON FERTILISER

Stage 4: Xtra provides the complete package to help you view and manage sample results. You can view results by item, variety and date with a clear record of where each sample is located, helping ensure contracts are collected correctly.

Stage 5: You are able to manage a single account or multi accounts with a single login. It is simple to set up: visit www.gleadellonline.co.uk and request a login.

We will confirm your details, together with a guide to using the website.

Gas-rich countries of the Middle East and North Africa have a renewed and strong desire to optimise the use of local resources, especially oil and natural gas. Having an abundance of natural gas means the production of Ammonia is cheap and continues to grow, as this accounts for almost 70% of production costs in all nitrogenous fertilisers.

The growth in Ammonia production has meant massive investments in new Urea capacity as this is the preferred source of Nitrogen worldwide. Since 1999, Urea production has expanded by a massive 44%, accounting for 90% of the growth in ammonia-based fertilisers between 1999-2010. We are also seeing investment in, and the expansion of, existing units as producers continue to play to their strengths and these sites will provide the UK market with the quality products now demanded. In the UK, we have only two main Nitrogen sites left which were built in the 1950s. It is now recognised that the demands of the modern farmer are changing and imports are now the product of choice.

“Toepfer have just recently renewed their contract with the SIUCI Fertiliser Complex in Oman which is recognised as being one of the newest and most modern Urea producing sites in the world.”

Our parent company, Toepfer International, are a truly global player in international fertiliser markets and continue to play a huge role in sourcing Urea for Gleadell in the UK. Their agreed monthly off-take contracts ensure they always have tonnage to place worldwide, and the Gleadell fertiliser import facilities at Avonmouth and Immingham are ideally placed to receive product, allowing them to service the increased UK demand.

Toepfer have just recently renewed their contract with the SIUCI Fertiliser Complex in Oman which is recognised as being one of the newest and most modern Urea producing sites in the world.

Contracted to move a minimum of 30,000 tonnes per month, this one contract alone could supply the whole UK market which is presently 290–320,000 tonnes of Granular Urea product annually.

global macroeconomic picture, the European debt crisis and slowed global economic growth.

These events are causing buyers to delay their purchases. However, outstanding buying is huge and inventories are low. This brings a danger for Q4 and Q1 for possible further price increases for Urea if all buyers enter the market at once.

The US and Latin America still have large requirements - and with India, Pakistan, Europe and Brazil sitting on the sidelines knowing they have to buy - let us hope they do not all go shopping together.

Calum Findlay, fertiliser trader

The 2011 market saw prices bottom out in April/May and, ever since, world Urea markets continue to experience a relatively tight balance. Prices today are now at their highest point since 2008 as buyers continue to focus on the

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