# Optimism returns to the urea market as paper market surges pre-Indian tender; physical markets slow to react

> Urea derivatives traded at a premium to physical prices as paper-market optimism returned ahead of an expected Indian tender. Arab Gulf and Egyptian September contracts rose, and Nola barges climbed above $450 per ton. Physical trade lagged the futures gains.

- Date: 2021-08-31 · published 2021-08-31T12:00:00.000Z
- Category: market · region Global · magnitude medium
- Page: https://feedsoft.ai/events/5166-optimism-returns-to-the-urea-market-as-paper-market-surges-pre-indian-tender
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

Expected Indian buying for the rest of the year and firmer paper prices support urea values, which feed into nitrogen costs for feed grain production.

## Read by commodity

- UREA: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| UREA | 2021-09-02 | 5 | +16.5% | 3.8 | Paper-market optimism ahead of an expected Indian tender lifted derivatives and Nola barges above $450/t, adding sentiment and demand-expectation momentum in the window. |
| UREA | 2021-09-03 | 5 | +16.5% | 3.1 | Paper-market optimism ahead of the Indian tender lifted derivatives and Nola barges above $450, a sentiment-driven part of the rally. |
| UREA | 2021-09-02 | 1 | +7.2% | 7.2 | Paper-market optimism before the expected Indian tender lifted urea derivatives and NOLA barges above $450, supporting sentiment-driven buying and short covering. |
| UREA | 2021-09-03 | 1 | +7.2% | 7.2 | Paper-market optimism ahead of the Indian tender lifted derivatives and Nola barges, creating the short-covering pressure that fed the rally. |

## Sources

- profercy.com: https://www.profercy.com/insights/optimism-returns-to-the-urea-market-as-paper-market-surges-pre-indian-tender-physical-markets-slow-to-react

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.