U.S. Gulf: Granular barges initially appeared to slumber over the holidays in the $358-$360/st FOB range. However, soon after Christmas, sources said buyers started to express interest – only to see prices go up.
Observers argued that buyers waited too long for the market to find a bottom, and when they came forward to actually buy, prices went back up as supplies had been working their way down in recent weeks. Sources said buyers were being prompted by farmers, who were wanting to lock in late-year deals for taxes. In addition, sources cited a rally in corn prices as also adding an impetus to buy.
The run-up in prices was quick. Those calling the market $360/st FOB on Tuesday were calling it $385-$387/st FOB by late Thursday.
Nothing new was heard on prills over the holidays, leaving those prices at $380-$385/st FOB.
Eastern Cornbelt: Granular urea pricing appeared to be swinging upward as the week advanced, fueled by a similar shift in the NOLA barge market. Sources said spot pricing out of the Cincinnati market had firmed from $400/st FOB early in the week to $425-$430/st FOB by Thursday. Illinois sources tagged the urea market at the $410/st FOB level at midweek on a spot basis.
Western Cornbelt: The granular urea market was quoted at $400-$415/st FOB regional terminals at midweek, “and changing with every phone call,” according to one source. Both the upper end and lower end of the range were reported in the Missouri market on a spot basis, while an Iowa contact pegged the dealer market at the $410/st FOB level at midweek.
In the Southern Plains, the Inola, Okla., urea market had reportedly firmed from $380/st FOB early in the week to $410-$415/st FOB by Dec. 29, paralleling the strength reported in the NOLA barge market.
California: Urea prices in California had reportedly slipped some $20-$50/st from early December pricing levels, depending on supplier and location. Sources tagged the granular urea market in the $525-$565/st FOB range last week, with no current delivered prices reported.
“Nobody is really purchasing any product just yet, so the markets are very hard to pin down,” said one California contact last week. “We do know that fertilizer prices from a wholesale standpoint are under pressure and are falling. Where they settle out is yet to be determined. Brokers and traders are driving down prices as they want to relieve themselves of their inventory positions.”
Pacific Northwest: Sources reported that urea pricing had plunged in the Pacific Northwest during the final weeks of 2011, driven by the weak NOLA barge market. Urea pricing was pegged in the $475-$510/st DEL range in the region in late December, down roughly $100/st from pricing levels reported earlier in the month. The low end was confirmed in the Montana market, while truck-delivered urea was reported in the $490-$510/st range elsewhere in the region.
Western Canada: Reference pricing for granular urea in Western Canada remained at $655-$680/mt DEL, with the low end reported in Manitoba and the upper numbers in the Alberta market.
Sources reported minimal changes to the spot markets in late December, though sources speculated that deals could be negotiated “depending upon specific market influences.” While pricing to retailers was generally unchanged, some noted that the wholesale market was starting to react to the softening trends for urea and DAP.
“Dealers have remained reluctant to build inventories and continue to only place orders when farmers do the same,” said one contact.
Pakistan: Late last week, TCP called a tender to close Jan. 9. The tender call is for an indeterminate amou