Zhongyu information report:
This week, the FOB Nola price of urea rose to more than 240 US dollars / ton due to the optimism of us demand in spring and the slight increase in export volume. This prompted traders to buy any granular commodities they could find for shipment in March and pushed up international commodity prices. The FOB price of a Middle East cargo ship was $245 per ton, up $10 from the previous FOB price, while the FOB price in North Africa increased slightly.
In March, producers had little to sell, but traders were basically looking forward to March. Most of the goods they buy will be sold to the United States, but Australia, Mexico and eventually Brazil will also be destinations. Traders will try to push up prices in these markets, which will support March and may transition the market to April, when India should restart buying.
After delaying the demand to buy the required goods, the rush to meet the spot import demand of the United States will promote the development of the market in the next 3-4 weeks
Traders need to find a place for goods scheduled for March. They bet that prices in the United States and Brazil will rise.
China is slowly fighting coronavirus and putting the domestic market first. Export supply is expected to be very small from March to April.
Tight supply from manufacturers will lead to further price increases in the next 30 days.