U.S. Gulf: Price ideas continued to drift downward, with players putting the market within the $324-$330/st FOB range or lower for BPC product.
Eastern Cornbelt: Potash was quoted at $370-$390/st FOB in the Eastern Cornbelt, depending on grade and location.
Western Cornbelt: Potash pricing continued to slip in the Western Cornbelt. Sources quoted the dealer market at $370-$390/st FOB last week, down another $7-$10/st depending on grade and location, with the low reported in Nebraska and the upper end in Iowa.
Southern Plains: Potash pricing had reportedly slipped to $375-$385/st FOB in the Tulsa market, down another $5/st from last report. The Carlsbad, N.M., potash market remained at reference levels of $405/st FOB for 60 percent standard, $410/st FOB for 60 percent granular and 62 percent standard, and $417/st for 62 percent granular.
The SOP Magnesia market FOB Carlsbad remained at $385-$400/st, depending on grade.
South Central: The potash market had reportedly slipped to $375-$380/st FOB in the South Central region, down $5-$15/st from last report, depending on location, with the low end quoted in the Memphis market last week.
Southeast: Imported potash tons remained at the $380/st FOB level out of most port terminals in the Southeast. Canadian tons were quoted at $400-$407/st rail-DEL in the region, depending on grade.
India: Belarus Potash Co. (BPC), K+S, and ICL have yet to officially announce annual supply contracts with Indian customers, although, as previously reported, BPC is reported to have agreed with Indian Potash Ltd. (IPL) to supply around 600,000 mt of potash during the current fiscal year ending March 31, 2016. The Belarusian producer also is expected to reach new supply contracts with other Indian buyers.
Uralkali, Canpotex, and Arab Potash Co. announced their annual contract signings earlier this month, concluding a $10/mt increase on a CFR basis. Uralkali’s announcement related only to its agreement with IPL. Altogether, concluded contracts are now reported to cover the supply to Indian buyers of a total of at least 3.55 million mt of potash, including optional volumes, during the current fiscal year.
Sources report that RCF received four offers in its tender for 145,000 mt in firm quantities, plus a further 120,000 mt at buyer’s option, which closed May 7. The offers were reportedly made at the new contract price of $332/mt CFR with 180 days. BPC, IPL, and MMTC were heard to be three of the companies offering tons. An award is expected shortly.
Brazil: After a difficult start to the year, higher volumes of potash are now starting to arrive in the country. Sources say prices largely remain at the $330-$340/mt CFR level, with BPC and possibly at least one other supplier reported to have achieved recent sales near the upper end of this range.
Suppliers are said to be targeting $350/mt CFR by the end of the current quarter.
Bangladesh: The Bangladesh Agriculture Development Corp. signed a US$44 million potash deal with the Canadian Commercial Corporation. The government-to-government arrangement includes an option for an additional US$22 million worth of material. The product will be delivered this fall and will come from Canpotex members.
The two government agencies signed the agreement May 13, but did not release its details until May 21.