U.S. Gulf: Prompt granular business spanned a broad range last week. Sources said prices started in the $430s/st FOB, shot up to $460-$470/st FOB, and then retreated. CF was reportedly seeking as high as $475/st.
One player said the price run up may have been due to buyer panic caused by a limited fill program and a quick and large price increase on the part of one supplier. Early Thursday, barges were reported to have retreated back to the $460/st FOB level; however, others claimed late in the day that price ideas were again back in the $430s/st FOB. Why was still a question, but sources said a fair number of imports are on the horizon in coming months, so the movement this time was in the buyers’ favor.
Sources also pointed to erratic changes in global prices, with the Black Sea shooting up and the Mideast price softening.
Prompt prill barges were reported to now be closer to granular, called $440-$500/st FOB for recent business.
Eastern Cornbelt: The granular urea market in the Eastern Cornbelt was quoted at $465-$500/st FOB regional terminals, down slightly from last report.
Western Cornbelt: Granular urea pricing had reportedly slipped to $480-$500/st FOB regional terminals in the Western Cornbelt, with the low reported in the Missouri market.
Northern Plains: The granular urea market was tagged at $485-$500/st FOB the Twin Cities, although reference prices were as high as $580/st FOB from some suppliers.
No delivered prices were reported in the North Dakota market.
Northeast: The granular urea market remained at $585-$595/st FOB in the Northeast. The nitrogen markets were quiet in the region. “Just like everyone else, we’re looking for fill tons and looking towards FY 2013,” said one contact.
Hot, dry weather continued to stress crops in parts of Pennsylvania and Delmarva, while more favorable conditions were reported in New York and New England.
Eastern Canada: The granular urea market had reportedly fallen to $610-$660/mt FOB in Eastern Canada, depending on location. Fertilizer activity was on the backburner in the region, and inventories were low. “The market is very slow,” said one contact. “Everyone is enjoying summer before the harvest and fall application.”
The region was blanketed with record-setting heat during the first days of July. On July 6, 11 daily heat records were set in Ontario, and record heat was also reported in Montreal.
Heat and drought stress was reported on corn crops in southwestern Ontario. Some 7 percent of Ontario farmland has received record low precipitation since April 1, with some of the worst fields reported around London, Guelph, and Kitchener.
Crop conditions in the Maritimes were described in favorable terms in early July, with crop development running about two weeks ahead of normal in Nova Scotia.
California: Effective July 1, Agrium’s granular urea postings in California moved to $580/st FOB West Sacramento; $590/st FOB Hanford and Richvale; $615/st truck-DEL in Central California; $625/st truck-DEL in Northern California; and $635/st truck-DEL in desert areas of California.
Pakistan: The TCP tender closed July 12 with prices up a tick from the previous tender. Sources said they were surprised that the price did not go up more.
The results of the tender came out after IPL/India announced it would close a tender July 14. The million or so tons that IPL is expected to take caused a number of players to begin taking positions with cargoes from Yuzhnyy to Indonesia and running up the price.
The tally of the TCP tender follows.