*Indian tender prices disappoint
Urea markets once again revolved around news out of India this past week, with the closing of their latest urea purchasing tender on Friday. As last time, the most competitive offers into the tender were below market expectations. However, rather than accept prices this time round, most participants in the tender have chosen to opt out of the business. Only the L1 east/west coast offers and one other cargo totalling around 120,000mt have been confirmed as sold into the tender.
*Urea paper markets rally
Paper markets initially came off a touch on Friday after the prices for the tender were released. However, as it became more evident there would be limited participation and another tender imminent, bullish sentiment returned to paper markets. Momentum soared on international paper Tuesday when the tonnage accepted into the tender was confirmed as less than 10% of what India was targeting. Another tender to make up for the shortfall should see higher prices all but guaranteed, and is set to be announced by next week. Consequently, paper values for AG were seen back above the $240 level for the first time since April, whilst similar levels traded for Egypt. Brazil paper values for August and September are now firmly back above the $250 mark. Sentiment on Nola urea followed the crowd, with the August contract trading up at $217 and September at $218 this week, up $7 and $8 respectively on where it was trading last week.