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Western urea markets weakened sharply in the week to 20 March as European demand dried up under quarantine measures. CFR prices fell, an Egyptian tender faltered, and Brazilian traders liquidated positions $20-25/t lower.
The euro and the Brazilian real both weakened against the dollar, raising import costs.
Collapsing European and Brazilian demand, combined with currency depreciation, reduces import buying and pushes urea prices lower. Eastern markets are holding up better for now, which could keep the western discount in place.
profercy.comChris YearsleyMar 20, 2020After 113 past macro events, Urea moved a median 0.0% over 5 sessions (48% higher; middle half -2.0% to +3.3%), and +3.7% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
