Urea prices have rallied over $200/ton on the mainland with demand out stripping supply by a massive margin.
Every farmer, fertiliser importer and country merchant believed there was going to be a drought and urea was not required. The whole Australian supply was empty at the start of July.
When cereal farmers in NSW and Qld returned from their holidays, they discovered their crops are looking very good but required a massive injection of nitrogen.
Despite Australia having near record imports of urea in May and June, demand has been far greater than supply. This will ease in the coming weeks as demand slows and imports are forecast to increase.
Imports for phosphates continue to well below the 5 year average. As with urea, importers are reluctant to import cargos unpriced. Feels like we are setting for the same issues we had with urea. Watch this space.