All posts by mickeybarb@charter.net

River System Woes Continue; Weather Forecasts Not Encouraging

Featured, Mississippi RIver, News, Transportation, U.S.

The Mississippi River and its tributaries are not out of the woods yet, as falling water levels threaten to deepen a crisis on the US’s main artery for moving vital products, according to Bloomberg.

While one bottleneck may have been eliminated on the Mississippi near Stack Island, Miss. (GM Oct. 7, p. 1), additional pressure points are emerging along the Mississippi’s more than 2,000 miles as the river falls into low stage, according to the National Weather Service.

As of Tuesday, in Memphis, Tenn., it had dropped nearly two feet since Saturday and is forecast to fall another two feet by Oct. 25, which would tie it for the third lowest on record. And now the Ohio River – which provides about 60% of the Lower Mississippi River’s water – is seeing closures at multiple locations due to groundings

In the Mound City, Mo., area alone – just north of Cairo, Ill., where the Ohio meets the Mississippi – the industry is working to refloat tows, according to the American Commercial Barge Line (ACBL). A dredge is in the area to cut a deeper channel, but is unable to assist until the currently-grounded tows are refloated, which may prove difficult amid unfavorable weather conditions. ACBL noted that downriver dredging at mile 681 was expected to close the river for 24 hours.

Across the US, 98 river gauges have fallen below the low water threshold, and most of those are on the Mississippi or its tributaries, according to the weather service.

“This is the worst we have seen the river in most of our careers,” said one fertilizer industry source. “It’s absolutely horrendous.”

“Low water like this, and how fast it hit, will be the stuff of legends,” said Margo Brock, Chief Operating Officer of shipping logistics firm Mercury Resources LLC.

However, overall the river isn’t in the worst shape it has ever been, said Jeff Graschel, a hydrologist at the Lower Mississippi River Forecast Center.

“We are getting water levels that are comparable to 2012,” Graschel said. “It is basically from the drought we have had in the Midwest over the summer.”

The impact this year will be greater than a decade ago as there’s so much more moving on the river now. And because barge capacity – due to channel depth and width limitations – has significantly decreased, there is an increased demand for barges, barge crews, and towboats to transport the 2022 harvest, according to Mike Steenhoek, Executive Director of the Soy Transportation Coalition. That puts added pressure on freight rates, which have soared 218% from a year ago for shipments originating from St. Louis, Mo.

The low water levels are occurring at a time when a major rail union raises the prospect of a railroad strike across the US, which could further choke the river movement (see related story).

Even so, there has not been an increase so far in rail traffic related to barge delays, according to Lee Klaskow, a senior analyst at Bloomberg Intelligence.

“The reason why products go on barges is that it’s much more economical and chances are the shipper and the receiver are on that waterway,” Klaskow said. “Getting that product onto the rails is not as easy as just snapping your finger and saying, ‘Oh I’m gonna call CSX and see if they could do it for me’ because there is a possibility that it might not be on a rail network.”

In recent times, the worst conditions were in 1988; while Graschel said the Mississippi isn’t there yet, it’s possible if things don’t improve.

In addition to the threat to traffic, the low water is allowing salt water to move upstream from the Gulf of Mexico. Many smaller communities south of New Orleans get drinking water from the Mississippi, and this threatens those supplies.

The Army Corps of Engineers is constructing barriers to keep the salt at bay, the first time it has had to do this since 2012.

Weather forecasts are not encouraging. As of Oct. 13, no rain was expected for most of the Midwest in the next seven days, the US Weather Prediction Center said. Northern Minnesota, parts of Wisconsin, Michigan, and most of Kentucky will likely get less than an inch of rain.

Florida Orange Crop to be Smallest in 79 Years; Fertilizer Co. Damage Minor-to-Modest

Featured, Florida, News

Florida is expected to have the smallest orange crop in 79 years due to Hurricane Ian, according to an Oct. 12 USDA report. In the meantime, damage to Florida fertilizer companies so far has been said to be minor-to-modest.

“Our operations in both Bartow and Lakeland are undergoing minor repairs,” said a Sylvite Florida spokesperson; both were back up soon after Ian (GM Oct. 7, p. 1). “The blenders are doing the same. Unfortunately, the citrus crop has suffered over 50% crop loss in central and southwest Florida. It has made a bad situation much worse.”

As reported last week, The Mosaic Co. reported modest damage to its Florida facilities, but said it may cost the company up to 250,000 mt of product and take 1-2 weeks for repairs (GM Oct. 7, p. 1). The company had not provided an update as of press time.

USDA said Florida is now expected to produce 28 million boxes for the current season, down 32% from the prior year. That is the lowest harvest since 1943.

“The drop is huge” and is likely to accelerate the trend toward more foreign supplies of juice,” said Jack Scoville, Vice President for Price Futures Group in Chicago in a Bloomberg report. “I doubt we will see a big recovery. The money isn’t there for growers.”

Orange juice futures surged as much as 4.9% to $1.997 a pound on ICE Futures US, approaching its highest levels since 2016. The price is up about 55% in the last 12 months. Tight supplies in Brazil, the top orange grower, and higher industry costs have contributed to the rally.

The slide represents the fourth straight decline for the Sunshine State, which has been eclipsed by California as the biggest US orange grower. The slump has been hastened by Ian, which carved a destructive path through orange groves in the latest blow to Florida’s $6.7 billion citrus industry. The storm’s devastation adds uncertainty to the US production outlook and threatens to lift imports and prices as consumers struggle with the worst inflation in four decades.

“Juice prices should go to the moon, but I doubt it will happen, because consumers would probably take pills for vitamin C rather than paying more,” Scoville said.

Florida’s grapefruit production is also forecast to tumble by 40% from a year ago, according to the USDA.

The USDA will probably cut Florida’s orange crop estimate further in the coming months when the severity of Ian’s impact becomes more evident, such as signs of more fruit drop and weakened trees, industry consultant Judy Ganes said.

The state’s citrus acreage has been in a downward trend for almost two decades, largely due to the damaging citrus greening disease that has decimated groves, as well as urban sprawl and hurricane damage.

Weather has been wreaking havoc on the world’s citrus crops, with severe drought in top growers Brazil and California last season helping crimp global supplies. Plunging US production is widely expected to boost imports from other nations, including Mexico, which were already on the rise prior to Ian.

Wilbur-Ellis, Advent Intl. Merge Life Sciences, Specialty Chemical Solutions Businesses

California, News, News Briefs, Northwestern Europe

Wilbur-Ellis, San Francisco, one of the largest family-owned companies in the world, and Advent International, Rotterdam, The Netherlands, a private equity investment firm with a track record in chemicals, on Oct. 14 announced that they have reached an agreement to merge their life sciences and specialty chemicals solutions businesses, Connell and Caldic BV, to create a global leader in its sector.

“We couldn’t be more excited about the partnership between Connell and Caldic,” said Wilbur-Ellis President and CEO John Buckley. “With Caldic’s strong global position and Connell’s 125-year presence in Asia-Pacific, the partnership will immediately establish a global, privately-held specialty chemicals and ingredients distribution leader. The combined organization will provide a broad range of solutions for customers.”

Connell’s product portfolio includes specialty chemicals and ingredients for life science segments such as food, pharmaceuticals, and personal care, as well as industrial segments such as coatings, rubber, and lubricants. Its network includes 48 locations in 18 countries.

The parties said the merger will accelerate growth opportunities for both principals and customers and drive further investments into people, technical labs, and sites. Together, Caldic and Connell will have more than 3,800 employees across 43 countries, which provide solutions to over 35,000 customers by leveraging 75 formulation centers and application labs and deep application know-how. The combination will generate sales of about €3 billion.

The transaction is expected to close in first-quarter 2023. No terms were disclosed.

Martin Midstream Sells Stockton Sulfur Terminal

California, News, News Briefs, Sulfur, Texas

Martin Midstream Partners LP (MMLP), Kilgore, Texas, on Oct. 10 announced the sale of its sulfur terminal in Stockton, Calif., to Gulf Terminals LLC, a privately held company offering sulfur handling and forming solutions to refineries and consumers. MMLP said the net proceeds of $5.25 million will be used to reduce outstanding borrowings under its revolving credit facility.

“Over the last several years, the partnership has sought opportunities to strengthen our balance sheet and reduce outstanding debt to lower our leverage,” said Bob Bondurant, MMLP President and CEO. “As a result, we have successfully completed multiple non-core asset sales, allowing us to focus on our refinery services business segments. And while the sulfur business remains a strategic piece of our operations, the Stockton Terminal was considered a non-core asset as it is geographically removed from our focus on the U.S. Gulf Coast area where our primary sulfur assets are located.”

MMLP’s main operations include terminal, processing, storage, and packaging services for petroleum products and byproducts; land and marine transportation for petroleum, chemical, and specialty products; sulfur and sulfur-based products processing, manufacturing, marketing, and distribution; and natural gas liquids marketing, distribution, and transportation services.

MMLP in July reported second-quarter net income of $6.6 million ($0.17 per diluted unit) on revenues of $267 million, up from a year-ago loss of $6.6 million ($0.17 per unit) and $184.3 million, respectively (GM July 22, p. 28). Adjusted EBITDA was $38.3 million, up from the year-ago $22.5 million.

At the end of June, MMLP had $494 million of total debt outstanding, including $149 million drawn on its $275 million revolving credit facility, $54 million of senior secured 1.5 lien notes due 2024, and $291 million of senior secured second lien notes due 2025. As a result, the company had liquidity of approximately $87 million from available capacity under its revolving credit facility.

MMLP’s adjusted leverage ratio, as calculated under the revolving credit facility, was 3.46 times on June 30 and 3.87 times on March 31, the company reported in July.

The Andersons Buys Mote Farm Service

Eastern Cornbelt, News, News Briefs

The Andersons Inc., Maumee, Ohio, announced on Oct. 10 that it has signed an agreement to purchase the assets of Mote Farm Service Inc., an ag retail business with two Indiana locations at Union City and Harrisville. The purchase is expected to close later this month.

“We are excited to expand our retail farm center network,” said Joe McNeely, President of The Andersons Nutrient and Industrial. “The purchase supports our strategy to be the Midwest’s premier provider of plant nutrients and agronomy services. We are looking forward to this opportunity to provide enhanced grower-focused solutions to eastern Indiana and western Ohio.”

According to its website, The Andersons currently has 18 facilities in Indiana, with locations at Delphi, Dunkirk, Galveston, Logansport, North Manchester, Oakville, Poneto, Seymour, and Waterloo. These include ag retail and wholesale sites, grain elevators, industrial facilities, and an ethanol plant.

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, South Central, Southeast Asia, Southern Plains, Texas, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

US Gulf/Tampa:

Tampa ammonia for October stands at $1,175/mt CFR, up $25/mt from September’s $1,150/mt CFR. Compared to the huge jumps and falls in the recent past, most sources saw this as a minor adjustment.

As for the prospects for Tampa in November, guidance appears mixed. On the one hand, Polish nitrogen plants have announced they are returning to production; on the other, threats against Norwegian gas facilities and the prospect that it will take at least a year to fix the sabotaged Nord Stream gas pipelines from Russia both weigh on November price ideas.

US Imports:

Ammonia import totals softened 2.0% in August, according to U.S. Census Bureau data, to 224,905 st from the year-ago 229,427 st. Imports totaled 418,516 st in the July-August period, falling 1.4% year-over-year from 424,314 st.

US Exports:

August ammonia exports were reported at 152,433 st, a 554.8% increase from the year-ago 23,281 st. July-August totals were up 223.8%, to 296,467 st from 91,561 st noted one year earlier.

Eastern Cornbelt:

Ammonia pricing remained firm-to-higher in the Eastern Cornbelt. While offers at Lima, Ohio, were steady at $1,300/st FOB, postings FOB East Dubuque, Ill., were reported at the $1,400/st FOB level for new business. The last confirmed offers at Koch and CF terminals fell in the $1,275-$1,300/st FOB range in Illinois and Indiana.

Western Cornbelt:

The ammonia market in the Western Cornbelt continued to be reported in the $1,250-$1,275/st FOB range, depending on location. “We’re just waiting for fall ammonia application to begin, but we need moisture for this to happen,” commented one source at midweek.

Southern Plains:

Ammonia pricing in the Southern Plains fell in the $1,150-$1,175/st range FOB regional production points in mid-October, with the high at Coffeyville, Kan., and the low reported for the last confirmed offers in Oklahoma. Truck pricing out of Gulf Coast terminals was quoted in the $1,080-$1,100/st FOB range.

“There is limited fall application at this time,” commented one Texas source. “A lot of ‘wait and see.’ There’s certainly no way to put down any ammonia until we get some rain.”

South Central:

Truck pricing for ammonia out of Gulf Coast terminals strengthened to $1,080-$1,100/st FOB, up from $1,050-$1,080/st at last report. No prices were reportedly being offered at El Dorado, Ark., Midway, Tenn., or Cherokee, Ala., sources said.

Black Sea:

Ammonia exports from Russia out of the Black Sea remain nil. However, efforts continue to implement a plan instigated by the United Nations to restart ammonia shipments out of Russia through Ukraine and out by sea.

Reportedly, the UN worked out a deal with Trammo to have the ammonia trader take ownership of ammonia as it crosses into Ukraine. From there, Trammo will negotiate a deal with Ukraine to have the ammonia sent to Yuzhnyy for seaborne export. The arrangement is reportedly part of the larger grain deal that would allow for the safe passage of Ukrainian grain to the world market.

The recent explosion on the bridge connecting Crimea to Russia and the illegal annexation of several Ukrainian provinces by Russia led to new demands and concerns. Sources said Russia is threatening to pull out of the grain deal if its ammonia does not start flowing to the world. Industry sources noted that the pipeline that would move the ammonia from the Russian-Ukraine border to Yuzhnyy passes through areas under renewed bombardment by Russia.

There was disruption to the market right after the flow from Russia stopped, but now the market has balanced itself and shows a surplus. Critics said implementing the plan could lower prices. However, despite statements from the UN, at least half of the ammonia exported would not be used for fertilizer production, but for other industrial use.

India:

Demand for ammonia is expected to pick up in India. Sources said the lower phos acid price negotiated for the fourth quarter could make domestic DAP production more viable. As a result, the producers might end up looking for more ammonia.

Prices remain at $850-$900/mt CFR, with spot purchases mostly coming from China and contract tons from the Arab Gulf.

Middle East:

Producers claim they have full order books and are not ready to offer spot ammonia tons. When asked, however, they will quote a price of $1,100/mt FOB for a spot deal. Sources said that level is too high for any current market.

Northwest Europe:

The ammonia price remains steady at $1,250-$1,310/mt CFR, with no new deals reported to shift the dial.Sources said some producers in Europe seem to be talking about either reopening their plants or stepping up production following reports of a dip in natural gas prices.

Southeast Asia:

Petronas continues its force majeure on LNG shipments, but sources said this does not seem to be impacting Petronas ammonia production. There is a report that Trammo bought a cargo from Petronas. No details of the sale were available to sources.

Urea

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

US Gulf:

NOLA urea barges started the week in the $600-$615/set FOB range, but dipped as low as $595/st on Oct. 13. Overall, the week’s average dropped from the week-ago range of $590-$635/st FOB.

US Imports:

Urea imports dropped 43.4% in August, to 143,657 st from 253,677 st in the prior year. July-August volumes were noted at 320,235 st, off 55.7% from the year-ago 722,203 st.

Imports originating from Qatar totaled 162,996 st for the July-August fertilizer year-to-date, topping both 75,399 st from Canada and 48,502 st from Saudi Arabia. Russia added 28,785 st.

US Exports:

Urea exports for August totaled 101,664 st, up 341.2% from the year-ago 23,042 st. July-August shipments were up 1,148.3%, to 403,319 st from 32,310 st in the prior year.

Eastern Cornbelt:

Urea terminal prices firmed slightly to $680-$690/st FOB in the Eastern Cornbelt, up $5/st from the previous week, with the low confirmed at Cincinnati, Ohio. Sources said pricing had been pulled at some Illinois River terminals due to low water levels and delayed barge shipments.

Western Cornbelt:

Urea pricing was reported in a broad range at $660-$700/st FOB in the Western Cornbelt, depending on location, with the low confirmed at St. Louis, Mo., and the high at Caruthersville, Mo. In the Northern Plains, the St. Paul, Minn., urea market was pegged at $680-$700/st FOB, up from the prior week’s $670-$685/st FOB range.

Southern Plains:

The urea market was quoted at $665-$680/st FOB in the Southern Plains, with the low confirmed at Borger, Texas. Pricing at Houston, Texas, was pegged at the $670/st FOB level at midweek, while the Catoosa/Inola, Okla., market was reported in the $670-$680/st FOB range.

South Central:

The latest urea offers in the South Central region ranged broadly at $670-$710/st FOB at mid-month, depending on location, with the low reported at Convent, La., and the high at Memphis, Tenn. Most Arkansas terminals fell in the $695-$700/st FOB range, while Kentucky sources quoted Ohio River terminals at the $685-$690/st FOB level.

Southeast:

Urea pricing in the Southeast slipped to $685/st FOB Wilmington, N.C., and other port terminals, down from the last reported range of $690-$710/st FOB in the region.

India:

India Potash Ltd. called a urea tender to close on Oct. 17, with shipping by Dec. 5.

Sources said IPL could be looking for as much as 2 million mt in this tender. Expectations as the week ended were for the winning price to be lower than the $668-$675/mt CFR secured in the last tender. One trader was careful to point out that while the market dynamics support lower prices, he does not think the market will crash. Rumors of price discussions in the Arab Gulf at $630/mt FOB put the landed price into India around $650/mt CFR. At that level, said sources, IPL might be able to get the large quantities it needs. If IPL does take 1.5-2 million mt in this tender, sources said another tender may not be needed until the first quarter of 2023. If IPL takes 1 million mt or less, however, another tender will most likely be needed to finish out the application year.

Sources said demand for urea remains strong. At the same time, domestic production is reportedly down because of limited amounts of natural gas.

Traders also said a lot depends on the source of the urea tied to the lowest offer. If that offer comes from a trader offering Chinese product, the other offering companies may have a difficult time matching the price. While Chinese producers have long ago abandoned the idea of being low-cost suppliers, some producers have been willing to entertain bids from traders that could lead to lower prices in the market.

Tenders from Pakistan and Bangladesh could affect how low producers are willing to go in pricing. The Trading Company of Pakistan called a tender for 300,000 mt of urea to close the same day as the IPL tender. In Bangladesh, the government authorized BCIC to call a tender for 60,000 mt of granular urea.

While both tenders pale in comparison to the IPL tender, they could offer just enough of an alternative market to push against efforts for lower prices.

Pakistan:

A urea tender for 300,000 mt was called by TCP to close on Oct. 17. The tender calls for all product to be delivered to Pakistan by Dec. 5.

This tender will be the first in Pakistan that will allow TCP to negotiate with offering companies in a manner similar to that of the Indian buyers. In the past, TCP had to accept the lowest offer and the tonnage offered at that rate. If the winning offer did not satisfy the needed tonnage, TCP would have to call new tenders until the full amount was awarded.

Under changes authorized by the government in late September, however, TCP can now use the lowest offer as a target for other offering companies to match. The buyer is allowed to go to the other offering firms with the low price as a counterbid. Just as the Indian buying houses move to secure as many tons as possible from as many suppliers as possible, TCP is expected to work its way through the offering companies until it achieves its goal of 300,000 mt.

The tender documents call for the awarded tons to be delivered in three tranches of 100,000 mt each. The first wave of 100,000 mt is to be delivered on Nov. 1-7, the second group of 100,000 mt will arrive on Nov. 10-16, and the third wave is to be delivered on Nov. 19-25.

The need to import urea came as government analysis showed domestic production was down. Local media reports cited both limited quantities of natural gas and the high price for any gas that is available.

International traders expressed concern about participating in the tender. They noted that Pakistan is short of hard currency necessary to pay for the urea. Traders said the recent wheat purchases made by the government were paid late, causing some concern among grain traders.

Sources are careful to point out that eventually Pakistan did pay for its purchases. However, some trading houses are facing financial difficulties that could be disastrous for them if payment is delayed too long. These trading houses may sit out the TCP tender and focus solely on the IPL tender, with its more reliable payment process.

Sources said the public tender was made after TCP attempted to repeat a previous government-to-government deal from earlier this year. However, they said the talks fell apart when the discussion centered on the payment process.

Bangladesh:

The government gave BCIC permission to initiate another tender for 60,000 mt of granular urea. The tender call is expected soon.

BCIC is also planning for tonnage awarded in a previous tender to come to Bangladesh. One cargo of 30,000 mt will come from Fertiglobe, and another 30,000 mt will come from Muntajat. The final price for these cargoes was $623/mt CFR bagged.

According to local media reports, the completion of a new plant at Ghorashal Palash will be pushed back until 2024 because of issues with the arrangements of loans from Japanese and Hong Kong banks. The facility was scheduled to replace two older nearby plants. In addition, some of the components for the plant could not be imported because of COVID-related delays.

The new plant has a rated production figure of 924,000 mt/y. The combined annual output of the two plants it will replace is 315,000 mt.

The government estimates current domestic annual production at 700,000-1 million mt, against annual demand of 2.5-2.6 million mt. The new plant was to cut into the 1.3-2 million mt of imports required to make up the difference between domestic production and demand.

Indonesia:

Pusri closed a prilled urea tender for 5,000-20,000 mt on Oct. 13. Three companies bid in the tender. Ameropa was the lowest bidder at $550/mt, with Liven second at $570/mt. The highest bid, and likely winner, was Swiss Singapore at $571/mt FOB.

Another tender from Kaltim is expected within a week. Sources said the tender could be for 50,000 mt, but could settle at a higher number.

Sources calculated that the producers would have a total of about 100,000 mt available for export now through November. Sales for exports are expected to end with this batch as the producers begin to focus on the domestic needs into the first quarter of 2023.

Middle East:

Producers in the Arab Gulf and Egypt have gone quiet as the industry prepares for the IPL and TCP urea tenders.

Sources said there was talk of prices around $630/mt FOB. This would be a slight drop from the $645-$650/mt FOB based on the previous India tender.

Reportedly, the deals closed with Egyptian producers have focused on deliveries to southern Europe and Turkey. The October and November order books are said to be full, with some December deals already under discussion.

China:

The number of tons available for the Indian tender is still up in the air, said traders. If the previous Indian tenders are any indication, there will be about three cargoes available for the IPL tender. There are reports that contracts with buyers in Southeast Asia dominate the tons currently at the port warehouses.

Sources said the government-imposed restrictions on exports and COVID-related delays have added a new dimension to talks among traders and their discussions with suppliers.

One trader said normally at events such as the recently concluded IFA Crossroads conference in Singapore, people talk about supply, demand, and the weather as the main forces affecting pending deals. Now, discussions include COVID-related delays in production and berthing schedules, uncertainty about Chinese government policies on exports, what quantities will be available from Russia and Ukraine due to the war, and trends in inflation and interest rates.

Brazil:

Urea prices in Brazil edged up to $680-$690/mt CFR on news that India was calling a new urea tender. Additional upward pressure came with news that Pakistan was also looking for tons.

Sources noted that while most ports showed a price rise, some sellers were still pushing urea from sanctioned countries – Venezuela or Iran – at $650-$660/mt CFR. Most of these tons were being offered in southern ports.

The urea price in Rondonopolis tightened to $785-$825/mt FOB ex-warehouse.

Ethiopia:

Urea imports for January-September 2022 were reported at 456,000 mt by Trade Data Monitor, up 6% from the 431,000 mt imported during the same period in 2021. The main suppliers were Egypt with 355,000 mt, and United Arab Emirates with 100,000 mt.

September 2022 imports of 403 mt were typical of activity for that month. September 2021 imports were reported at 22 mt, with no imports reported for September 2020.

Third-quarter 2022 imports were reported at 111,000 mt, up 26% from the 88,000 mt imported during the same period in 2021. Egypt supplied 100,000 mt of the quarterly imports, with the UAE sending an additional 10,000 mt.

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 barge price ideas continued to be reported in the $550-$555/st ($17.19-$17.34/unit) FOB range, though some argued that the market may have topped out at $550/st FOB.

US Imports:

August UAN imports firmed 1.4%, to 203,266 st from the prior year’s 200,462 st. July-August totals were reported at 282,184 st, however, a 32.1% decrease from the year-ago 415,505 st.

Russia topped the August-July import list with 197,851 st, followed by Canada with 75,311 st and the Netherlands with 8,912 st.

US Exports:

UAN exports were up 277.5% in August, to 295,782 st from the prior year’s 78,352 st. Exports jumped to 451,201 st in July-August, up 181.7% from the year-ago 160,173 st.

Eastern Cornbelt:

UAN-32 pricing in the Eastern Cornbelt inched up to $595-$620/st ($18.59-$19.38/unit) FOB, with the low reported for 4Q tons out of spot Illinois River terminals and the high for limited fill offers on the Ohio River.

Rail-DEL pricing continued to be reported at $625-$635/st ($19.53-$19.84/unit) in the region, while the last UAN-28 offers were pegged at $530/st ($18.93/unit) FOB Cincinnati.

Western Cornbelt:

UAN-32 prices in the Western Cornbelt remained at $585-$610/st ($18.28-$19.06/unit) FOB for limited offers, with the low confirmed at Port Neal, Iowa, and the high at Muscatine, Iowa.

Rail-DEL pricing was pegged at the $615/st ($19.22/unit) level or higher in the region. The St. Louis market was quoted at $590-$600/st ($18.43-$18.75/unit) FOB for the last offers.

Southern Plains:

Most UAN-32 offers fell in the $565-$585/st ($17.66-$18.28/unit) range FOB production points in Oklahoma and Kansas. The upper end of the regional range was reported at $605-$610/st ($18.91-$19.06/unit) FOB Gulf Coast terminals in Texas.

South Central:

UAN-32 terminal prices continued to strengthen, with reports of limited offers in the $585-$610/st ($18.28-$19.06/unit) range FOB South Central terminals, depending on location, up from the last confirmed $570-$590/st ($17.81-$18.44/unit) FOB range.

Southeast:

UAN-32 pricing in the Southeast was quoted in a broad range at $550-$590/st ($17.19-$18.44/unit) FOB port terminals, up from $540-$570/st ($16.88-$17.81/unit) FOB at last report, with the low confirmed in Georgia and the higher end of the range at Wilmington.

Ammonium Nitrate

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

US Imports:

August ammonium nitrate imports were reported at 14,248 st, a 20.6% decrease from the year-ago 17,943 st. July-August totals stood at 31,363 st, down 39.8% from the year-ago 52,121 st.

US Exports:

Ammonium nitrate exports totaled 62,730 st for August, a 40.6% increase from 44,620 st recorded in August 2021. July-August exports were noted at 95,416 st, up 16.7% from the prior year’s 81,790 st.

Western Cornbelt:

The ammonium nitrate market was steady at $640-$650/st FOB Missouri terminals.

Southern Plains:

Ammonium nitrate remained at a firm $650-$660/st FOB in Oklahoma.

South Central:

The ammonium nitrate market was pegged at $670-$675/st FOB Yazoo City, Miss., for the last offers, up significantly from the $600/st FOB levels reported in mid- to late-September.

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:

NOLA ammonium sulfate barges remained in the $400-$410/st FOB range.

US Imports:

July-August ammonium sulfate imports were noted at 79,458 st, off 42.4% from the year-ago 137,947 st. August imports totaled 35,303 st, a 63.2% decline from the year-ago 137,947 st.

Material imported from Canada totaled 48,199 st for July-August. With no imports logged for August, Belgium tons totaled 30,349 st for the period, with the Netherlands adding 521 st.

US Exports:

Ammonium sulfate exports stood at 91,949 st for August, a 49.7% rise from the year-ago 61,430 st. July-August exports fell 1.5%, however, to 114,577 st from the prior year’s 116,346 st.

Eastern Cornbelt:

The granular ammonium sulfate market remained at $460-$480/st FOB in the Eastern Cornbelt, depending on location, with the Cincinnati market quoted in the $465-$480/st FOB range.

Western Cornbelt:

Granular ammonium sulfate pricing was quoted at $445-$460/st FOB in the Western Cornbelt, with the low confirmed at St. Louis. The Caruthersville market was steady at $450/st FOB.

Southern Plains:

Granular ammonium sulfate pricing in the Houston market was pegged at $425-$450/st FOB, down from a flat $450/st at last report. The Catoosa/Inola market was quoted in the $450-$460/st FOB range at mid-month.

South Central:

Ammonium sulfate pricing remained at $440-$450/st FOB in the South Central region, with the low confirmed at Memphis and the high in Arkansas.

Southeast:

Ammonium sulfate prices FOB Hopewell, Va., remained at $450/st FOB for granular, $410/st FOB for mid-grade, and $390/st FOB for standard. Pricing in the Florida market was reported at $395/st FOB/DEL for standard and $505/st FOB/DEL for granular.

China:

The market softened to $220-$225/mt FOB for caprolactam grade amsul. Sources said offers remain at $230/mt FOB, but buyers have so far been successful in pushing back against this price.

Brazil:

The landed price remained stable at $280-$295/mt CFR. Sources said the lack of movement was surprising due to the increase in urea prices. Normally, amsul shifts in pricing with urea.

The price range in Rondonopolis tightened to $395-$410/mt FOB ex-warehouse. Sources said there is a steady demand for amsul in the local markets, because buyers are pleased to receive the marginal boost of sulfur that the product provides.