U.S. Gulf: The market was put in the mid-to-high $330s/st FOB.
Eastern Cornbelt: Potash was quoted at $375-$387/st FOB in the Eastern Cornbelt, depending on grade and location, with the low reported in Cincinnati and the upper end for white granular potash on a spot basis.
Sources continued to talk of a disappointing fall application season overall, owing both to late crop maturation and a reluctance by farmers to buy inputs with weak corn prices and uncertainties about next year’s acreage.
“I think there is some concern about the breakeven point on corn,” said one contact. “The drop in fertilizer prices has been helpful, but all that being said, what is the breakeven point next year if you’re still paying the same cash rent?”
Western Cornbelt: Potash was quoted at $370-$380/st FOB regional warehouses in the Western Cornbelt, depending on grade and location. One Iowa contact quoted the common dealer market for red granular potash at the $375/st FOB level last week.
Southern Plains: Potash pricing continued to slide in the Southern Plains, with sources quoting the warehouse market at $370-$375/st FOB, down $10-$15/st from last report.
Pricing out of Carlsbad, N.M., was also lower, with the market quoted at $375-$382/st FOB, depending on grade. The low end of the Carlsbad range was for red granular and the upper end for 62 percent white granular and soluble potash.
South Central: Potash pricing was reported at $370-$380/st FOB warehouses in the South Central region, with both the high and low ends of the region reported in the Arkansas market. The Memphis potash market was pegged at the $375/st FOB level last week.
Southeast: Potash was quoted at $377-$380/st FOB regional warehouses in the Southeast, down from last report, with rail-delivered tons commonly tagged at the $380/st mark in the region.
Belarus: BPC has fully recovered after the breakup, and exported more product in October – 400,000 mt – than the year-ago month, according to one report last week from Belta, the Belarus news agency.
Although much news coming out of the country is met with skepticism, Belta said Belarus has almost restored its share of the market, and is online to earn $2 billion from potash sales in 2013. BPC claims to have restarted sales to India and is doing a good business to Myanmar, with plans to be one of the top three sellers to Brazil.
Another report is a denial that BPC plans to adopt a volumes-over-price marketing strategy. BPC rejected reports that it would cut prices $30-$40/mt, and estimates that prices will begin to go up next year. It says prices have already evolved to allow minimal profits to a majority of manufacturers.
BPC says it will increase its sales of containers of potash to serve those buyers who want to buy smaller lots and protect themselves from volatile prices. As for resuming cooperation with Uralkali, BPC makes no projections.
“An agreement between the Belarusian and Russian partners would be a positive outcome for the market,” said BPC First Deputy Director General Alexander Polyakov. “And we are ready for it. We hope Uralkali will change its attitude towards the market and consumers, and adjust its price-forming policy.”