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The China Agricultural Materials Circulation Association said urea prices have moved away from supply and demand fundamentals because of speculation in domestic futures. Futures rose from 1649 yuan/ton in June to 2356 yuan/ton on September 1, and the national average wholesale urea price reached 2547.18 yuan/ton on August 28.
The association urged market participants to avoid following the trend.
Speculative futures buying has pushed domestic urea prices well above fundamentals, and a regulatory push to cool speculation could reverse some of that gain.
woldigroup.comHebei Woldi Trading Co.,LTDSep 5, 2023Not enough comparable past events yet for a historical read.
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.
Speculative domestic futures rally in China pushed prices away from fundamentals into early September, adding sentiment-driven upward pressure that preceded the move.
