U.S. Gulf: Lower price ideas were being reflected last week, according to sources, who said $294/st FOB was being offered with no takers.
Some argued that still lower numbers would have to be offered to pull in a new trade. Others, however, maintained that business had occurred as high as $300/st FOB, and said that prices will likely firm once farmers actually start pulling material.
Eastern Cornbelt: Potash prices were reportedly under pressure in the Eastern Cornbelt, with several sources noting that the market “keeps falling” since the announcement of summer fill pricing levels in early July.
Red tons were reported at $336-$340/st FOB in the Cincinnati market last week, with other regional locations generally reported in the $340-$350/st FOB range, depending on grade.
Western Cornbelt: The potash market was flat at $340-$355/st FOB warehouses in the Western Cornbelt, depending on grade and location.
Northern Plains: Sources talked of a softer potash market out of regional warehouses in the Northern Plains, with the range reported at $345-$352/st FOB, depending on grade and location.
North Dakota sources quoted delivered potash in the $340-$350/st range last week, with the market FOB Saskatchewan mines pegged at roughly $305-$315/st for standard, $310-$320/st for granular, and $317-$327/st for soluble to U.S. customers.
Great Lakes: Although reference prices for potash remained at $355/st FOB for red and $362/st FOB for white granular tons out of warehouses in the Great Lakes region, sources pegged the market more commonly in the $345-$355/st FOB range, depending on grade and location.
The sulfate of potash (SOP) market was unchanged at $740/st FOB Toledo, Ohio.
SOP Magnesia remained at $540/st FOB in Michigan.
Northeast: Potash remained at $352/st FOB Baltimore for red, with the upper end of the regional range reported at $360/st FOB for white granular and/or soluble potash. Rail-delivered potash was pegged at $360-$367/st in the Northeast.
Southeast Asia: Most import markets in the region remain largely out of the buying season, although demand is expected to revive by late September or October. Currency concerns and weak palm oil prices continue to weigh heavily on potash demand sentiment, however.
The Malaysian ringgit, Asia’s worst performer this year, is now at its lowest against the U.S. dollar since before the government put a “floor” under the currency in 1998. Malaysian palm oil futures hit their lowest in nearly 6-1/2 years on Aug. 25.
In Indonesia, in addition to a deteriorating rupiah, benchmark palm oil prices are reported to be heading for an eighth weekly drop, and there are concerns that a new levy will impact export shipments.
Indonesia’s new export levy, which came into force on July 16, requires exporters to pay $50/mt for crude palm oil export shipments and $30/mt for shipments of processed palm oil products. The crude palm oil levy makes Indonesian product less competitive in global markets. Crude palm exports were estimated to have slumped 20 percent to a four-month low in July due to Ramadan holidays and the new levy, according to local media reports.
No significant new potash import business is reported in either country. Current prices are reported at $305-$310/mt CFR for standard material in Malaysia, and around $310-$315/mt CFR for standard product in Indonesia. Sources reported minimal new business to test the market, however.
Regarding the region’s smaller markets, Uralkali is reported to have sold a cargo for September delivery to Vietnam in the $320s/mt CFR. It is unclear if this is a mix of standard and granular