All posts by hlancey@bloomberg.net

EPA to Restart Chlorpyrifos Use After Ruling

News Briefs

Farmers will be able to use the pesticide chlorpyrifos on soybeans and other crops again, the US EPA announced last month. The announcement reflects the tug of war the agency has faced following two decisions by separate circuit courts, reported Bloomberg Law.

EPA said it will allow chlorpyrifos to be used following November’s US Court of Appeals for the Eighth Circuit ruling that the agency in 2021 unlawfully revoked its permission to use the insecticide. The 2021 ban of chlorpyrifos’ use on food crops followed an April 2021 Ninth Circuit ruling requiring the EPA, within 60 days, to either ban the pesticide’s use on food crops to protect children or lower the allowable residue that could remain on food (GM April 30, 2021).

The result was a too-rushed decision, the Eighth Circuit’s opinion said. “A short deadline is no excuse for zeroing in on a single solution to the exclusion of others,” the opinion said.

Although EPA will allow all canceled uses to resume, it also will propose a new rule soon to revoke the tolerances – legal pesticide residue levels – for all but 11 uses mentioned by the court, the agency said. The 11 uses include application on crops such as alfalfa, soybeans, citrus, peaches, and tart cherries that rely on chlorpyrifos to kill caterpillars, beetles, moths, and other insects. About 55% of chlorpyrifos was used on those types of crops before the 2021 ban, the EPA said.

Working with pesticide makers, the agency aims to identify additional restrictions so that the 11 high-benefit uses of chlorpyrifos could continue while also protecting farmworkers, other vulnerable groups of people, and vulnerable species, EPA said.

In addition to human health concerns, EPA said it is working with the National Marine Fisheries Service to address problems chlorpyrifos and other pesticides could cause threatened or endangered species – including orca, salmon, and sturgeon – identified in a 2022 Biological Opinion the fisheries service issued.

The American Soybean Association (ASA), among other agricultural groups, was pleased with EPA’s decision, said Kyle Kunkler, Director of Government Affairs for ASA, which was among the groups that petitioned the Eighth Circuit for its review.

EPA’s 2021 food use ban disregarded its own science that had identified the 11 high-priority uses of chlorpyrifos as safe, Kunkler said. The latest decision acknowledges the importance of those uses and EPA’s plan to work with registrants to allow those applications to continue. As one of the primary parties impacted by the 2021 ban, Kunkler said the ASA plans “to take them up on that and engage very thoroughly.”

The Eighth Circuit didn’t disagree with the Ninth, said Noorulanne Jan, an associate attorney with Earthjustice, which represented the environmental groups that petitioned the Ninth Circuit. The Eighth Circuit didn’t eliminate the EPA’s ability to ban food uses. It said EPA needed to use a more robust process to reach its decision, she said.

As EPA makes its decision this time, Jan said it will have to show its work more clearly. “The science shows it’s an unsafe pesticide for children and farmworkers and their families,” she said.

“Children don’t get a do-over on brain development, and acute poisonings have a cumulative effect on the long-term health of farmworkers and their families,” Earthjustice said in a statement. “Pursuing environmental justice means protecting children and farmworker families. EPA should act accordingly.”

States with the highest uses of chlorpyrifos in 2019, the most recent year for which data is available, include Iowa, Nebraska, and Minnesota. High-use crops for chlorpyrifos include corn, soybeans, and orchards including grapes, according to the US Geological Survey.

Ammonia

Ammonia, Brazil, Eastern Cornbelt, Market Watch, Middle East, South Central, Southern Plains, Tampa, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

US Gulf/Tampa:

Tampa ammonia was steady at January’s $525/mt CFR contract, $100/mt below the December Tampa price. While no indication was reported for February pricing, sources noted a significant drop in inland terminal offers for winter fill tons during the week.

US Imports:

November ammonia imports were 170,451 st, according to US Census Bureau data, down 2.7% from the year-ago 175,150 st. July-November volumes totaled 857,156 st, a 9.8% decline from 950,493 st in the prior year.

Canada sent 476,412 st to the US in the July-November fertilizer year-to-date, Trinidad and Tobago shipped 329,488 st, and Saudi Arabia added 22,091 st.

US Exports:

Ammonia exports softened 15.1% in November, to 91,019 st from 107,196 st in November 2022. July-November exports slipped 5.3%, to 558,832 st from the year-ago 589,964 st.

Morocco was the top export destination for July-November with 146,052 st, followed by Norway with 114,690 st. Chile moved into third place with 55,557 st, ahead of 49,414 st to the Netherlands.

Eastern Cornbelt:

Producers were reportedly lowering prices on January-February ammonia fill tons to generate some business in a very slow market. Reports of fill offers in the $550-$600/st FOB range were heard in Illinois and Indiana at midweek, depending on location, with spring prepay prices remaining in the $625-$650/st FOB range.

“The falling market continues to scare people off,” said one contact. “Any reasonable bid will probably be considered right now.”

“Most retailers don’t feel a sense of urgency to get covered in this environment,” added another regional source.

Western Cornbelt:

Sources reported lower ammonia prices in the region, with January-February fill tons dropping to $535-$585/st FOB in Iowa and Nebraska, depending on location. Delivered fill pricing was pegged at $580-$585/st in Iowa during the week, while spring prepay reference prices remained at $625-$645/st FOB in Iowa and Nebraska.

Southern Plains:

Ammonia was falling in the Southern Plains, with January-February fill tons quoted at $535-$580/st FOB terminals in Oklahoma and Kansas, down from reference levels posted at $600-$620/st FOB in mid-December. Spring prepay offers remained as high as $620-$625/st FOB in the region, though sources said no business was taking place at those levels.

South Central:

The ammonia market in the South Central region was pegged at $475-$500/st FOB terminals and Gulf Coast production points in the wake of the $100/mt drop in Tampa ammonia for January, down from December’s $570-$625/st FOB range in the region.

Middle East: 

Sources reported no new spot deals from the Middle East during the week. Producers admit there will be spot tons available for February and March orders, though sources questioned the strength of demand.

Brazil:

Brazil closed out 2023 with ammonia imports and exports down about one-third from the previous year, according to Trade Data Monitor.

Exports totaled 62,000 mt for the year, off 37% from the year-ago 99,000 mt. The US led buyers with 18,000 mt, South Africa took 15,000 mt, and Norway received 14,000 mt. December exports of 14,000 mt, all to Norway, were 16% below the 18,000 mt shipped in December 2022.

Brazil imported 298,000 mt of ammonia in 2023,down 33% from the 445,000 mt received in 2022. December exports were 17,000 mt, off sharply from 58,000 mt in December 2022, with Trinidad and Tobago sending the entire amount.

Urea

Black Sea, Brazil, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Urea, Western Cornbelt

US Gulf:

NOLA urea firmed to $304-$310/st FOB for reported January business and $310-$320/st FOB for February, above last week’s $300-$312/st FOB range for January-February trades. March indications, while too far out for inclusion in this week’s published range, were quoted at the $320-$325/st FOB level.

Sources said the firming trend was fueled in part by expectations that India might take advantage of lower offers in its latest tender and book higher volumes than expected, potentially tightening global supply.

US Imports:

November urea imports stood at 319,890 st, down 43.3% from the 563,686 st posted last November. July-November volumes softened 4.2%, to 1.28 million st from the year-ago 1.33 million st. July-November imports from Russia were 436,322 st, while Qatar sent 272,947 st. Saudi Arabia shipped 195,037 st, ahead of Algeria’s 140,284 st and Canada’s 138,620 st.

US Exports:

Urea exports fell 19.0% in November, to 54,846 st from 67,750 st in November 2022. July-November totals dropped 52.4% year-over-year, to 366,081 st from 769,233 st. Exports to Canada totaled 189,311 st in July-November, followed by 76,974 st to Chile and 74,966 st to Mexico.

Eastern Cornbelt:

The urea market rebounded to $365-$380/st FOB in the Eastern Cornbelt in the wake of slightly higher NOLA values, up $5-$10/st from last week. Spot pricing included $370-$375/st FOB Cincinnati, Ohio, and Ottawa, Ill.

In the Great Lakes region, Michigan urea prices were reported at $385-$395/st FOB and $400/st DEL for January-February tons.

Western Cornbelt:

Urea was quoted at $360-$385/st FOB in the Western Cornbelt, with the low confirmed at St. Louis, Mo., and the high in Iowa on a spot basis. The St. Paul, Minn., urea market was pegged at $375-$385/st FOB during the week.

Southern Plains:

Urea prices in the Southern Plains were reported in the $365-$385/st FOB range during the week, depending on location and time of shipment, with the low confirmed at Catoosa/Inola, Okla.

South Central:

Urea slipped to $350-$385/st FOB in the South Central region, down slightly from the prior week’s high of $390/st FOB. The low was confirmed at Convent, La., with most river terminals in Tennessee, Arkansas, and Kentucky falling in the $370-$385/st FOB range, depending on location.

Southeast:

Urea prices were down slightly in the Southeast, to $370-$380/st FOB port terminals from the prior $375-$385/st FOB range, with the low reported at Wilmington, N.C.

India:

The prices in the National Fertilizers Ltd. (NFL) tender were released during the weekend with a Jan. 9 deadline for accepting the counterbid. Twenty companies offered a total of 2,722,800 mt. Of that amount, one company, RE Energy and its offer of 50,000 mt, was disqualified. PIC offered its 45,000 mt directly on an FOB basis.

Agri Commodities had the lowest offer for an East Coast delivery, for 35,000 mt at $329.40/mt CFR. Fertcom was the lowest offering firm for the West Coast with 50,000 mt at $316.80/mt CFR. The prices represented a drop of $76-$84/mt from the October 2023 Indian Potash Ltd. (IPL) tender, and were the second lowest prices offered in an Indian tender since 2021.

Offering Company TotalWest Coast East Coast
Quantity (mt) Quantity (mt) $/mt CFR Quantity (mt) $/mt CFR
Fertcom 100,000 50,000 316.80 50,000 335.00
Agri Commodities 106,000 71,000 322.00 35,000 329.40
Aditya Birla Group 479,000 295,000 326.00 184,000 333.75
Midgulf 300,000 150,000 346.11 150,000 348.11
Samsung 270,000 180,000 331.70 90,000 341.20
FertiStream 180,000 100,000 347.00 80,000 353.00
OQ Trading 150,000 105,000 325.00 45,000 345.00
Continental 145,000 95,000 324.50 50,000 331.85
Dreymoor 121,500 45,000 337.00 76,500 343.00
Aries 100,000 50,000 359.25 50,000 357.52
Keytrade 100,000 100,000 343.50
MacroSource 100,000 50,000 347.47 50,000 351.47
Sun International 100,000 100,000 342.15
Koch 95,000 47,500 340.40 47,500 349.80
Ameropa 94,300 47,150 349.50 47,150 355.50
Fertiglobe 90,000 45,000 324.00 45,000 331.00
Medallion 50,000 50,000 331.00
Indagro 47,000 342.00 347.00

The final awards in the tender came to 647,000 mt, with 497,000 mt going to East Coast ports and 150,000 mt for West Coast deliveries. The shipping deadline for the awards is Feb. 29.

West Coast: $316.80/mt CFR
Total: 150,000 mt
Offering Company Quantity (mt)
Aditya Birla Group 50,000
Fertcom 50,000
Medallion 50,000
East Coast: $329.40/mt CFR
Total: 497,000 mt
Offering Company Quantity (mt)
Aditya Birla Group 184,000
Samsung 90,000
FertiStream 50,000
Continental 48,000
Fertiglobe 45,000
OQ Trading 45,000
Agri Commodities 35,000

The $13/mt difference between the East Coast and West Coast port pricing is well above the usual $5-$8/mt differential, sources said. As a result, Arab Gulf producers can realize a better netback delivering their product to the East Coast. Sources said the 150,000 mt going to West Coast ports now appears to be sourced solely from Russia.

The final awarded amount is not too far off from the market’s expectations leading up to the tender closing. Sources predicted the final take in the 600,000-800,000 mt range, with some suggesting that at the right price, NFL might take 1 million mt.

The lower amount was expected largely because the tender was seen more as an effort to build a buffer stock. Reserves were reported at a near-record 7 million mt leading up to the tender, leaving traders to speculate that few tons would be needed to start the next season.

Black Sea:

Russia reportedly has about 400,000 mt of prilled urea available for export in January and February. Sources said the 150,000 mt awarded for West Coast deliveries into India are all expected to come from Russia.

The estimated netback for Black Sea prills from the Indian tender was put in the $240s/mt FOB, though some sources saw the market in the $250s/mt FOB. However, with freight rates to India’s West Coast seen in the $70s/mt, this higher level seems unlikely. Lower freights could be tied to demand from Turkish buyers looking for granular product to cover shorts, though freight costs from some larger cargoes, possibly destined for Ethiopia, pushed netbacks down again.

The current netback could change, said sources. The growing number of attacks on cargo vessels in the Red Sea by Houthi militants has driven some vessel operators to forego traveling through the Suez Canal and Red Sea in favor of the longer and more expensive trip around the Cape of Good Hope. So far, no fertilizer vessels have been attacked, sources said, but that could change.

If ships from the Black Sea are forced to take the longer route, the freight costs could increase by $10-$15/mt, sources indicated, which would most likely have to come from the producers’ side. Producers are already reluctant to go below $240/mt FOB, players noted, despite growing pressure from European and African buyers.

Indonesia:     

Prices from the Pupuk tender that closed last week settled a few dollars above the previous tender. Ameropa secured 12,000 mt of prilled urea and 45,000 mt of granular at $324/mt FOB, sources said. The last tender came in at $321/mt FOB.

Discussions are reportedly still in progress for additional tons at the $324/mt FOB level. Sources noted that with Chinese urea exports on hold for the next several months, regional buyers now seem willing to accept the premium prices that are often associated with Indonesian product. The latest price will also keep Indonesian product out of reach in the Indian tender, ensuring sales to other buyers.

Middle East: 

The $320/mt FOB offer from PIC into the Indian tender was seen by some traders as the price floor for Arab Gulf producers. The netback from the East Coast of India was put at $306-$310/mt FOB. At the same time, other deals were reported at $315-$317/mt FOB.

The price differential between India’s East and West Coast offers provided producers an opportunity to eschew the closer and lower prices typically enjoyed by West Coast ports. Normally the gap between the two Indian coasts is $5-$8/mt, providing little difference in netbacks. However, the $12/mt difference in the current tender allowed producers to keep their prices above $300/mt FOB.

While producers were enjoying their good fortune in the Indian tender, sources reported sales from two producers that showed stronger pricing ideas being accepted by buyers. Oman reportedly sold a cargo for February shipment at $315/mt FOB. SUICI, also from Oman, was said to sell a February cargo at $317/mt FOB.

It was also a good week for Egyptian producers, starting with a 6,000 mt sale at $336/mt FOB, slightly below the area’s last-done business. By Thursday, four producers announced small-lot sales totaling 73,000 mt. Pricing laddered higher with each sale, culminating in business concluding at $375/mt FOB.

Producer $/mt FOB Quantity (mt)
MOPCO 336.00 6,000
338.00 7,000
340.00 6,000
345.00 6,000
360.00 6,000
375.00 6,000
KIMA 337.00 6,000
Abu Qir 350.00 6,000
352.00 6,000
358.00 10,000
Helwan 360.00 8,000

These small lots were sold in addition to the larger cargoes already booked for shipment to Ethiopia to cover awards from that country’s most recent tender. The week’s demand for the smaller lots appeared to come from buyers for Turkey and Southern Europe looking to cover shorts.

China:

No new urea cargoes were reported leaving the country, sources said. Even tons that were initially cleared by customs officials for export are being held up, according to traders. This mirrors the situation facing phosphate exports in China, one trader noted.

Even with tight export restrictions in place, some providers are still allowed to talk with international traders about small lots of 5,000-8,000 mt to be shipped in containers to regional buyers, although the continued lack of new business leaves nothing available for price discovery. This situation is expected to continue through the first quarter, and possibly into May.

Brazil:

Imported urea prices in Brazil lifted to $325-$340/mt CFR from $320-$335/mt CFR in the prior week. Market sentiment turned optimistic on the results of the Indian tender and increased activity in Europe. There are reports that some sellers have withdrawn offers from the market.

Rondonópolis prices widened to $465-$485/mt FOB ex-warehouse from last week’s $475-$480/mt FOB as more players returned from the holiday season. The market’s high volatility is reportedly impacting negotiations for the second corn crop, which was delayed due to weather constraints.

Rains and improved weather forecasts are leading farmers in some parts of the north-central region of Mato Grosso state to consider an increase in corn acreage. For now, however, suppliers are facing delivery issues due to delays at the port of Santarém.

Urea buyers for Brazil were aggressive in 2023. Trade Data Monitor reported yearly imports at 7.3 million mt, up 3% from the 7.1 million mt purchased in 2022. The increased buying continued even as local vendors reported sufficient supplies.

Oman and Qatar combined for 40% of the year’s imports, with Oman sending 1.6 million mt and Qatar shipping 1.3 million mt. Nigeria remained a steady supplier as well, sending 1.2 million mt to Brazil, down slightly from 1.17 million mt in 2022.

December imports were pegged at 949,000 mt, the market’s largest monthly import total in the previous four years and a 37% increase from the 693,000 mt received in December 2022.

UAN

Eastern Cornbelt, Market Watch, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, UAN, Western Cornbelt

US Gulf:

NOLA UAN barges remained at a nominal $240-$245/st ($7.50-$7.66/unit) FOB based on upriver pricing, with no new business reported to test the market.

US Imports:

November UAN imports totaled 163,956 st, off 40.4% from 274,900 st in November 2022. July-November imports were 895,702 st, down 7.9% from the year-ago 972,477 st. Russia sent 532,062 st for July-November, Trinidad and Tobago added 191,363 st, and Canada sent 168,944 st. 

US Exports:

UAN exports for November softened 67.4% year-over-year, to 79,941 st from 245,028 st. July-November shipments were 34.3% lower, at 844,794 st compared to 1.29 million st last year. France received 288,527 st of US product in July-November, while Australia took 169,150 st, topping 164,666 st to Argentina.

Eastern Cornbelt:

UAN-32 was pegged at $275-$300/st ($8.59-$9.38/unit) FOB regional terminals in the Eastern Cornbelt, depending on location, with the low reported at Mount Vernon, Ind., for prompt tons. The Cincinnati market continued to be quoted at the $280/st ($8.75/unit) FOB level for January-February business, with Ottawa pricing at $280-$285/st ($8.75-$8.91/unit) FOB.

Western Cornbelt:

The low end of the regional UAN-32 market dropped at midweek to $260/st ($8.13/unit) FOB Port Neal, Iowa, for 1Q shipments, with 2Q tons quoted at the $275/st ($8.59/unit) FOB level at that location. The upper end of the market was pegged at $290-$295/st ($9.06-$9.22/unit) FOB for January-February tons, with delivered offers quoted at a similar range in Iowa.

Southern Plains:

UAN-32 was unchanged at $255-$280/st ($7.97-$8.75/unit) FOB terminals for prompt tons in the Southern Plains, with the low reported at Verdigris, Okla., and the high out of Kansas terminals. UAN pricing out of Gulf Coast terminals in Texas were quoted at similar levels in early January.

South Central:

The UAN-32 market remained at $275-$285/st ($8.59-$8.91/unit) FOB terminals in the South Central region, with the low reported for prompt tons in the Kentucky market.

Southeast:

UAN-32 prices in the Southeast generally remained at $270-$280/st ($8.44-$8.75/unit) FOB regional terminals in early January, though sources described the market as weak, with a recent $269/st ($8.41/unit) FOB Wilmington deal providing the low end of the range.

Ammonium Nitrate

Ammonium Nitrate, Brazil, Market Watch, Poland, South Central, Southern Plains, U.S. Exports, U.S. Imports, Western Cornbelt

US Imports:

Ammonium nitrate imports for November moved 1.2% higher year-over-year, to 19,790 st from 19,547 st. July-November imports softened 11.1%, however, to 110,294 st from 124,114 st in 2022. Canada sent 109,257 st in July-November. China added 452 st, beating 394 st from Vietnam.

US Exports:

November ammonium nitrate exports were 119,500 st, a 120.5% increase on the year-ago 54,192 st. Exports firmed to 396,839 st in July-November, up 54.7% from 256,511 st through the same period last year. Canada was the largest export destination in July-November with 226,420 st. Mexico received 101,135 st and Lithuania took 39,690 st.

Western Cornbelt:

Ammonium nitrate prices were down some $20-$30/st in Missouri, to $310-$330/st FOB for 1Q shipments, depending on location.

Southern Plains:

Ammonium nitrate pricing dropped to $295/st FOB in Oklahoma, well below the prior $330-$360/st FOB range in the region.

South Central:

The ammonium nitrate market slipped to a broad $250-$305/st FOB in the South Central region, with the low reported for the last business FOB Yazoo City, Miss., and the high out of upriver terminals in Kentucky.

Brazil:

Trade Data Monitor reported 2023 ammonium nitrate imports at 1.14 million mt in Brazil, a significant increase from 708,000 mt in 2022, with Russia sending 99% of the tonnage. Changes to Russia’s export policy accounted for the increase. While exports of many products were severely limited in 2022, the restrictions were adjusted heading into 2023, allowing countries such as Brazil to return to near-normal import rates.

December imports totaled 61,000 mt, against the 30,000 mt received one year earlier. Russia supplied the entire amount.

Poland:

Grupa Azoty reported that its production of nitrogen fertilizers in December totaled an estimated 281,000 mt, compared with 282,000 mt in November. The company’s production of compound fertilizer reached 54,000 mt in December, down from 62,000 mt in November.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Cornbelt, Market Watch, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

US Gulf:

The latest ammonium sulfate barge trades were reported in the $265-$270/st FOB NOLA range for January-February tons based on confirmed new business, up from last week’s $255/st FOB level, with sources citing tight nearby supply for the increase.

US Imports:

July-November ammonium sulfate imports firmed 50.0% year-over-year, to 424,189 st from 282,770 st. November imports were up 23.8%, at 50,238 st compared to the year-ago 40,585 st. Imports from Canada were noted at 216,874 st for July-November, ahead of 83,943 st from Russia and 58,123 st from Belgium.

US Exports:

Amsul exports for November stood at 55,608 st, down 37.5% from the year-ago 88,917 st. July-November exports totaled 306,490 st, falling 19.7% from the 381,510 st posted one year earlier. Exports to Peru totaled 78,055 st in July-November, while Canada moved into second place with 39,267 st. Brazil took 33,905 st, followed by Mexico with 30,506 st and 29,626 st to Uruguay.

Eastern Cornbelt:

Granular ammonium sulfate in the Eastern Cornbelt was pegged at $310-$330/st FOB, depending on location, with the low confirmed at Cincinnati and in Illinois on a spot basis. Michigan ammonium sulfate prices were pegged at the $335-$355/st DEL level, depending on time of shipment.

Western Cornbelt:

The granular ammonium sulfate market was unchanged at $300-$330/st FOB in the Western Cornbelt, with the St. Louis market pegged in the $310-$320/st FOB range.

Southern Plains:

Granular ammonium sulfate remained at $285-$295/st FOB Houston, Texas, and $305-$325/st FOB Catoosa/Inola.

South Central:

The ammonium sulfate market remained in a broad range at $260-$325/st FOB in the South Central region, with the low confirmed in southern Mississippi and the high in Arkansas.

Southeast:

Ammonium sulfate remained at AdvanSix’s Dec. 18 reference levels, which included Hopewell, Va., pricing at $335/st FOB for granular, $305/st FOB for mid-grade, and $285/st FOB for standard grade. Lower levels were reported in Florida, however, with standard down to $260/st DEL and granular at $330/st FOB warehouses.

China:

Prices for caprolactam grade amsul bounced back dramatically, sources said, to $125-$130/mt FOB. One trader previously predicted that buyers might become more aggressive for Chinese ammonium sulfate in order to replace the urea that is being blocked from exiting the country.

Sources noted that the Chinese government did not include amsul on its restricted export list because it is a byproduct of other industrial operations, unlike urea. Amsul prices are expected to fluctuate as urea prices and demand shift in the area.

Brazil:

Ammonium sulfate imports were steady at $160-$170/mt CFR, while bids were reported around the $155/mt CFR mark. With ammonium sulfate maintaining a premium to urea on a nitrogen basis, sellers are attempting to follow the urea price higher.

The Rondonópolis market increased by $15/mt at the high end of the range, to $290-$320/mt FOB ex-warehouse from $290-$305/mt FOB, following the CFR market’s recent increases.

Ammonium sulfate imports in Brazil increased marginally year-over-year, Trade Data Monitor reported, to 5.1 million mt in 2023 from 5 million mt one year earlier, a 3% increase. China sent 4.9 million mt. December imports were 809,000 mt, up from 724,000 mt purchased last December, with 100% of the material supplied by China.

Yara North America -Management Brief

Management Briefs

Effective Jan. 16, Nasser Dean will join Yara North America as Director of Government and Regulatory Affairs, replacing Gary Vogen, who has retired. Nasser brings 25 years of experience in US agricultural policy, serving the last 14 years with Bayer Crop Science in regulatory engagement, stakeholder relations, and government affairs roles. Nasser also had prior leadership experience at the US Department of Agriculture and the Western Plant Health trade association.

Nasser has a bachelor’s degree, graduating with honors, in Political Science from the California State University at Chico, and additional executive business education from the University of Notre Dame. Nasser will be based out of his home office in Roseville, Calif., and can be reached at nasser.dean@yara.com.

Flagship Pioneering – Management Brief

Management Briefs

Dean Banks on Feb. 1, 2024, will join venture capital company Flagship Pioneering as CEO-Partner and CEO of Indigo Ag, a Boston-based technology provider. Banks has served on Indigo’s Board of Directors since July 2022, and was the former President and CEO of Tyson Foods. He is also a former leader at X, an Alphabet company formerly known as Google X.

Banks will take over for Ron Hovsepian, who has served as Indigo’s CEO since September 2020 after succeeding company founder David Perry. Indigo’s products and services include biological seed treatments, second-generation digital merchandising solutions, and the first crop of registry-issued ag carbon credits at scale.

Hovsepian will continue to serve on Indigo’s board and as an advisor to the CEO. Indigo announced that it has also added Nader Bekhouche of Investment Corporation of Dubai and Noubar Afeyan of Flagship Pioneering to its board.

DAP/MAP

Brazil, Central Florida, China, DAP/MAP, Eastern Cornbelt, India, Market Watch, South Central, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

Central Florida:

Central Florida DAP prices were flat at $590/st FOB, sources said, unmoved from last week. MAP trucks continued at $630/st FOB. North Florida MAP postings prices were stable at $640/st FOB, with players reporting strong demand.

US Gulf:

NOLA DAP barges lifted 2.6% for the week, to $580-$615/st FOB from last week’s $575-$590/st FOB. DAP prices have closed the gap with MAP barges in recent weeks, which at times boasted a premium of more than $100/st to DAP in 2023.

MAP prices firmed $5/st at the bottom of the range, to $625-$630/st FOB from the week-ago $620-$630/st FOB.

US Imports:

DAP imports were down 84.5% in November, to 9,551 st from 61,703 st in November 2022. Imports moved up 123.8% in July-November, however, to 713,179 st from last year’s 318,619 st. July-November imports from Saudi Arabia were steady at 454,703 st, while tons shipping from Jordan totaled 119,543 st. Australia added 80,372 st.

MAP/Other imports were up 18.9% in July-November, rising to 452,985 st from 381,110 st in the prior year. November imports were 69.0% lower, however, to 28,448 st from the year-ago 91,788 st. Tunisia sent 128,632 st for the fertilizer year-to-date, while Mexico moved into second place with 112,262 st. Saudi Arabia added 103,061 st and Australia sent 81,991 st.

US Exports:

DAP and MAP exports from the US Gulf were noted at $570/mt FOB for the last reported deals, unchanged from the prior report.

November DAP exports lifted 67.1%, to 65,112 st from the year-ago 38,957 st. July-November exports moved down 40.1%, however, to 204,901 st from 342,285 st in the prior year. US DAP sellers sent 81,605 st to Peru in July-November, ahead of 31,964 st to Uruguay and 22,375 st to Mexico. Canada took 20,541 st.

MAP/Other exports softened 4.5% in July-November, to 730,994 st from the year-ago 765,777 st. November cargoes were counted at 173,441 st, however, a 20.5% increase from the 143,883 st reported one year earlier. Canada received 583,453 st in July-November, topping 38,272 st to Australia and 33,463 st to Mexico.

Eastern Cornbelt:

DAP continued to strengthen, firming to a broad $635-$670/st FOB range in the Eastern Cornbelt, up from the previous high of $650/st FOB. MAP was up as well, to $680-$695/st FOB. The latest Cincinnati offers were quoted at $650-$670/st FOB for DAP and $685-$695/st FOB for MAP.

Western Cornbelt:

DAP firmed to $635-$650/st FOB in the Western Cornbelt, with the St. Louis market pegged in the $635-$640/st FOB range. MAP was quoted at $660-$690/st FOB in the region, with the high in Iowa and the low confirmed at St. Louis.

Southern Plains:

DAP prices jumped to $630-$660/st FOB in the Southern Plains for what sources described as tight supply, with the Catoosa/Inola market pegged at the $650-$660/st FOB level, up from the previous $635-$645/st FOB range. MAP was quoted at $680-$690/st FOB in the region, up $10/st from last report, with the low reported at Catoosa/Inola.

South Central:

DAP prices continued to strengthen at river warehouses. The latest offers in the South Central regional were reported at $635-$650/st FOB, depending on location, up from the prior $620-$640/st FOB range.

Southeast:

Nutrien’s latest MAP posting included $640/st FOB at Aurora, N.C., and White Springs, Fla.

China:

There is currently no export market for Chinese phosphates, sources said. Like urea, sources reported that DAP and MAP tons initially cleared for export are now being denied permission to be loaded to vessels.

The export restrictions have caused some concern for buyers in Latin America who depend on MAP deliveries to Pacific ports. Buying substitute stocks from Russia often means a long and expensive journey around the southern tips of either Africa or South America because of transit restrictions in the Panama Canal.

Many buyers in Latin America had depended on vessels from China to supply quantities of MAP, amsul, and urea. Now, vessels are only allowed to carry amsul out of the country, making freight costs much higher.

India: 

Rumors of a $575-$585/mt CFR DAP sale into India by PhosAgro were quickly shot down. The deal would have provided some support for buyers looking to move prices down. However, with players firmly denying the sale, prices remained in the upper-$590s/mt CFR.

Brazil:

The landed MAP price in Brazil was reported at $550-$570/mt CFR, unchanged from last week.

Rondonópolis MAP prices shook off six weeks of stagnation, firming to $680-$695/mt FOB ex-warehouse from $680-$685/mt FOB at last report. Players noted low availability in the area as key suppliers are restricting volumes.

Despite the increase, demand remains limited due to slow purchasing for the corn season. Interest for the 2024/25 soybean crop is not expected until the second and third quarters of the year.

MAP imports in Brazil moved up 28% in 2023, according to Trade Data Monitor, to 5.2 million mt from the 4.1 million mt received in 2022. Russia accounted for 47% of the import market with 2.4 million mt, while Morocco sent 1.6 million mt and Saudi Arabia added 837,000 mt.

December imports were 389,000 mt, a 66% increase from 234,000 mt in December 2022. Russia sent 250,000 mt, followed by Morocco with 100,000 mt.

TSP

Brazil, Eastern Cornbelt, South Central, Triple Superphosphate, U.S. Gulf, Western Cornbelt

US Gulf:

NOLA TSP barge pricing was steady in the $440-$460/st FOB range. The bottom of the range was reportedly set by Egyptian tonnage, with the highs achieved on sales of Moroccan material.

Eastern Cornbelt:

TSP was unchanged at $515-$535/st FOB in the Eastern Cornbelt, with the low at Cincinnati. The TSP market in Michigan remained at $565/st DEL for January-February tons.

Western Cornbelt:

The TSP market was pegged at $515-$535/st FOB in the Western Cornbelt, depending on location.

South Central:

TSP was quoted at $520-$530/st FOB terminals in the South Central region, with the low reported at Memphis, Tenn., and the high at Little Rock, Ark.

Brazil:

TSP imports slipped to $430-$440/mt CFR, falling $5/mt at the bottom of the range.

TSP offers at Rondonópolis followed the MAP market higher, however, lifting to $520-$535/mt FOB ex-warehouse on demand from blenders planning their 2024/25 supply. Due to low MAP availability, some TSP suppliers are reportedly holding out for $550-$565/mt FOB, though no trades were confirmed at that level.