All posts by mickeybarb@charter.net

Landus to Invest $150 Million to Modernize Facilities

Featured, News, Western Cornbelt

Landus, Iowa’s largest farmer-owned cooperative, announced on May 27 that it plans to invest $150 million in incremental capital spending into core grain and agronomy facilities throughout the company’s territory to modernize aging infrastructure and improve service to local farmers.

The Ames, Iowa-based cooperative said the investments will happen over the next four years and are intended to increase speed, safety, and capacity at a time when aging rural infrastructure is presenting challenges for farmers and ag businesses.

Landus on March 1 experienced a structural failure at a concrete grain silo in Yetter, Iowa, that resulted in adjacent railroad tracks being covered in fallen debris and grain. No injuries were reported. On May 14, 2021, the company’s grain elevator in Jefferson, Iowa, experienced a dust explosion that prevented it from receiving grain until last fall (GM May 21, 2021). No injuries were reported in either accident.

“Rural Iowa needs our industry to step up to the plate and reinvest for the future the way our forefathers did for us,” said Matt Carstens, Landus President and CEO. “A generation of farmers came together to build up the cooperative infrastructure in the 1950s. But since then, our industry has not done our job building for the future the way they once did. We owe our farmers and our communities more, and the Landus team is proud to roll out this robust reinvestment plan designed to deliver facilities of the future where they are desperately needed.”

According to World-Grain.com, citing Sosland Publishing’s 2022 Grain & Milling Annual, Landus ranks as the 10th largest grain handler in the U.S., with 56 licensed grain facilities and 152.686 million bushels of licensed grain storage.

Landus also announced that it will unveil its Innovation Connector and collaborative workspace in downtown Des Moines, Iowa, this summer. The project is designed to connect farmers directly to innovators, tech start-ups, and change makers driving the future of ag forward.

“It is not enough for a cooperative to simply meet the needs of farmers today,” Carstens said. “We must lay a solid foundation for what our farmers will need in the future. Landus is proud to expedite that journey forward with this robust reinvestment into our critical rural hubs. We look forward to unveiling more to our farmer-owners in the months ahead.”

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, Indonesia, Market Watch, Middle East, Northern Plains, Northwestern Europe, Tampa, Thailand, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa:

Tampa anhydrous ammonia prices were concluded at $1,000/mt CFR for June, down $425/mt from May’s $1,425/mt CFR. Most sources continue with a bearish tone for July, citing the revival of production in Europe, as well as the new Ma’aden ammonia plant coming online.

Eastern Cornbelt:

Prompt ammonia prices remained under pressure in the Eastern Cornbelt as demand shifts to sidedressing. New offers in Illinois, Indiana, and Ohio were confirmed at $1,375-$1,400/st FOB terminals, depending on location, down from last week’s firm $1,400/st FOB level. The posted price FOB Lima, Ohio, remained at the $1,400/st level in early June.

Western Cornbelt:

Ammonia pricing remained at $1,355-$1,400/st FOB in the Western Cornbelt, depending on location.

Northern Plains:

Ammonia pricing in the Northern Plains fell to $1,470-$1,500/st FOB and $1,495-$1,520/st DEL for new prompt offers, down from $1,500-$1,525/st FOB and $1,650-$1,675/st DEL in mid-May.

Middle East:

Ma’aden confirmed its #3 plant was fully operational, although they are still saying it is in the commissioning stage. Sources reported that some material is being discussed for the spot market, but the current asking price is still too high for the market.

Reportedly, producers in the Arab Gulf are still asking $1,250/mt FOB for spot product. Traders said with the ammonia coming from the Ma’aden plant and reduced demand in Southeast Asia, the price needs to be below $900/mt FOB.

While the addition of the Ma’aden material will help ease the supply shortage the market has been suffering through, it will not be enough to replace the tons still missing from the closure of the Black Sea supplies.

Black Sea:

No product is reported out of the area. A news report from Ukraine noted that the closed Togliatti-Odessa pipeline had a small leak. No injuries to citizens in the area were reported.The pipeline was closed following the Russian occupation of Donetsk in 2014, but the local media reported that there was still about 250 mt of ammonia in place.

Northwest Europe:

EuroChem reportedly bought a cargo for Antwerp from a non-Russian source. However, sources could not describe the quantity, the source, nor the price. Prices have been under pressure, said one trader, but without firmer information on this most recent deal, the listed price remains at $1,200/mt C&F.

Product out of the Baltic ports remains at a standstill because of actions taken by the Baltic States against Russia for its invasion of Ukraine. The Ventspils facilities are empty because the Latvian government is not allowing Russian product to cross its borders for storage and then export. Meanwhile the tanks at Sillimae in Estonia are full, but the government is not granting permission for ships to load the Russian ammonia for export.

Sources said the porous E.U. sanctions against Russian gas and oil, combined with the exemptions allowed by the U.S., are raising hopes that production costs for ammonia will come down and that some Russian ammonia will become available.

Indonesia:

The Indonesia government just released the first-quarter export numbers. January-March exports of ammonia were reported at 478,000 mt, according to Trade Data Monitor, down marginally from the 520,000 mt exported during the same period in 2021. The largest single buyer was South Korea, taking 123,000 mt.

March 2022 exports were reported at 163,000 mt, up 14% from 143,000 mt in March 2021. South Korea took just under a quarter of the tonnage with 39,000 mt. Newcomers to the Indonesian market were Tunisia with 28,000 mt and Belgium with 25,000 mt. Neither had made any purchases from Indonesia for at least six years.

The purchases were done just as the sanctions against Russia were taking place and buyers were looking everywhere for whatever tonnage was available. About the same time, OCP in Morocco broke with tradition and also began reaching out to Indonesia for ammonia.

Thailand:

January-April imports of ammonia were reported at 100,000 mt by Trade Data Monitor, down 35% from the 153,000 mt imported during the same period in 2021. The main supplier was Malaysia with 80,000 mt.

April 2022 imports were down marginally, to 45,000 mt from the 58,000 mt imported in April 2021. Malaysia supplied nearly the full amount in April 2022.

Urea

Black Sea, Brazil, China, Eastern Canada, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, Pakistan, Thailand, U.S. Gulf, Urea, Western, Western Cornbelt

U.S. Gulf:

NOLA granular barge prices collapsed. The week began at $550/st FOB, with $500/st FOB reported late on June 2. The week-ago price was $570-$585/st FOB. New prill trades were put in the $515-$540/st FOB range.

Eastern Cornbelt:

Urea prices continued to decline in the Eastern Cornbelt, fueled by further weakness in NOLA barge pricing. Sources pegged the regional market at $620-$645/st FOB, down significantly from last week’s $665-$695/st FOB range, with the low confirmed in Illinois and the high at Cincinnati, Ohio.

In the Great Lakes region, urea prices dropped to $715/st FOB Toledo, Ohio, down another $15/st from the prior week. Posted prices out of Michigan warehouses remained as high as $850/st FOB on a spot basis in early June.

Western Cornbelt:

Urea prices dropped to $600-$640/st FOB in the Western Cornbelt, down from the previous week’s $665-$695/st FOB range, with the high confirmed in the Iowa market. St. Louis, Mo., urea prices were pegged in the $600-$615/st FOB range at midweek.

Northern Plains:

The urea market was quoted at $600-$615/st FOB St. Paul, Minn., and $630/st FOB Carrington, N.D., down significantly from the last reported $685-$715/st FOB range. Delivered offers were pegged at the $700-$720/st level in North Dakota.

Northeast:

Urea pricing reportedly dropped to $725-$730/st FOB in the Northeast, down from $750-$765/st FOB, with the low confirmed at Fairless Hills, Pa. In the Southeast, the urea market FOB Savannah, Ga., dropped to $775/st FOB from the previous $810/st level.

Eastern Canada:

Urea prices in Eastern Canada were reported in a broad range at C$1,375-$1,465/mt FOB during the week, down from the prior low of C$1,395/mt FOB.

Western Europe:

Sources said the gap between prilled and granular urea price levels in the region has diminished as demand from the industrial sector for prilled product weakens.

India:

A new urea tender is expected no earlier than mid-June, but more likely in early July. Sources said India needs to purchase at least 1.5 million mt to stay on track for the current season.

Sources said the most likely price for the next tender, based on rumors and talk during the IFA conference in Vienna, would be around $640/mt CFR. This would be about $75/mt lower than the previous tender.

The downward pressure on pricing is coming from reports that China will allow up to 500,000 mt of urea to be available for the next tender. At the same time, Russia continues to offer urea at discount prices to entice buyers. The return of the two big exporters – Russia and China – could prove a blessing to the cash-strapped Indian buyers.

Even as talk of the next tender continues, sources said the Indian government is also in deep discussions with Russia to arrange for urea via barter or rupee/ruble deals. Reports that the U.S. is allowing exemptions in its sanctions against Russia for the transport of fertilizers could make the shipments easier to arrange.

Even as the international market was improving for Indian buyers, efforts to make India urea self-sufficient were dealt a blow when the Pollution Control Board ordered Ramagundam Fertilizers Company Ltd. to close its 1.25 million mt/y urea plant.According to local news reports, the plant was accused of chemical gas leaks and of dumping its wastewater in a way that damaged the local groundwater.

The plant was closed in 1999 because it was an expensive coal-fired facility. After the Modi government decided to modernize the country’s fertilizer production to reduce dependency on imported urea, the plant was retrofitted as a gas-powered facility. The upgrade work began in 2016.

Members of the ruling party said the complaints against the plant were started by opposition party leaders in the area around the facility. The complaints, they said, were designed to embarrass the Indian government. Environmental activists, however, have also raised concerns about the wastewater discharges.

Pakistan:

The Pakistan government gave permission to a TCP plan to buy 200,000 mt of urea on a government-to-government basis from China with 90 days credit.

The agreement came after the government and TCP discussed the possibility of buying a portion of the 200,000 mt in an open tender. Sources said the current market price of urea would make a tender expensive to Pakistan, which is reportedly low on foreign reserves.

Similar deals have been done in the past with Arab Gulf states. No names of the supplying companies in China were made available.

The government set a new price for urea at Rs1,850 per 50-kg bag (US$187/mt). For producers and regional distributors, this price is a reduction from Rs2,000-$2,030 per 50-kg bag ($200-$205/mt). However, based on the previous official price, this is an increase.

Local media reported that the cost of production was such that no one could offer urea at the lower official price.

In order to get the producers on board, local media reported that the government agreed to ensure that the funds to cover arrears for past subsidies were included in the next budget. At the same time, the government is to supply natural gas to the urea producers at a lower subsidized rate.

Middle East:

Producers are waiting for the next Indian tender before they start quoting prices to potential buyers.If the price into India does come off, as some are expecting, sources said the price in the Arab Gulf could drop into the upper-$500s/mt FOB from the current $680s/mt FOB.

There is some pushback against this bearish view, however. Sources said they were surprised to hear a more bullish attitude during the IFA meeting in Vienna. Some of the price pessimism could come from reports that China might make as much as 500,000 mt available for the next Indian tender. At the same time, exemptions from sanctions for Russian fertilizers are reportedly in place. Arab Gulf producers will once again be facing two larger suppliers who are often willing to lower prices to secure large sales.

If Russia and China do come back into the Indian tenders with large quantities, the Arab Gulf producers will have to look elsewhere. The move will come right after other buyers began relationships with different suppliers after the Arab Gulf producers focused on India. Sources note, for example, that the new Dangote plant in Nigeria will be providing tonnage in the second half of the year. Arab Gulf producers once filled these orders.

Egyptian producers remained quiet this week. They are still looking at $730/mt FOB for their product. However, if the next Indian tender goes as some traders expect, the producers might be facing bids at $600/mt FOB.

Black Sea:

Urea exports from the area remain nonexistent, or are being kept quiet. Even with reports now from the U.S. that fertilizer exports are exempt from the sanctions against Russia, traders are still nervous about doing business in the area.

Reportedly, India is actively looking at ways to pick up as many Russian tons as possible. There are reports that India is looking at barter deals, as well as expanding its rupee/ruble exchange program.

June may be a good month for Russian exports. The limitations on exports expired on May 31. A new decree limiting exports will not take effect until July 1. Sources said buyers are moving quickly to take advantage of this window.

While the Russian government has not issued any export numbers since January 2022, other countries have reported their purchases from Russia. According to Trade Data Monitor, Russia exported 1.5 million mt of urea in the first quarter of the year, compared with 1.7 million mt during the same period in 2021.

Turkey’s January-April urea imports were reported at 738,000 mt by Trade Data Monitor, down about 30% from the 1.05 million mt imported during the same period in 2021. The main suppliers were Oman with 437,000 mt and Egypt with 132,000 mt.

April 2022 imports were reported at 209,000 mt, down 28% from 290,000 mt in April 2021. Oman accounted for about 80% of the April imports at 165,000 mt, followed by Iran with 24,000 mt.

China:

Sources reported that Chinese urea producers could offer 300,000-500,000 mt in the next Indian tender. Reportedly, the portside warehouses are building up reserves for the tender. This would almost be a return to normal.

Sources noted, however, that getting permission to export is becoming more difficult. Exporters still have to convince customs officials that any exported tons will not adversely affect the Chinese domestic market. The process is now said to be taking as long as 60-120 days, instead of the previous 30-60 days. The longer bureaucratic delays may be what has motivated traders and producers to push as many tons as possible to the portside warehouses.

There are at least three cargoes going to India under the previous tender from China. Sources noted, however, that only one cargo is of Chinese origin. The other two cargoes are most likely Iranian product that passed through Chinese warehouse paperwork. This process is not unknown nor uncommon, said traders.

Brazil:

Urea prices are coming off as buyers push ever lower. Domestic traders called the landed price $640-$650/mt CFR, while some international traders claim the price range should be as low as $620/mt CFR. This lower number, said one trader, represents Iranian material that is a regular stable of some Brazilian buyers.

Even as prices appear to soften, buyers are still reluctant to make major purchases. Sources said buying ideas are now coming in around $570/mt CFR.

The Rondonópolis price has dropped significantly to $790-$840/mt FOB ex-warehouse. The reported increase of Russian supplies is giving buyers encouragement to hold off for even lower prices.

Sources said the biggest concern remains logistics. There are still long delays getting vessels to the dock for unloading and then ensuring enough trucks at a reasonable price to move the product inland.

Indonesia:

The lack of any new business is keeping the urea price at $628/mt FOB. Sources said, however, the current pressure for lower prices could hit the producers once tons are again made available.

January-March urea exports were reported by Trade Data Monitor at 203,000 mt, down 43% from the 354,000 mt exported during the same period last year.

March 2022 exports were reported at 198,000 mt, marginally up from the 192,000 exported in March 2021.The main March buyers this year were from India at 137,000 mt, accounting for 69% of the exports. Philippine buyers were second, taking 29,000 mt.

Thailand:

January-April imports were reported at 517,000 mt by Trade Data Monitor. This is up 23% from the 421,000 mt imported during the same period in 2021.April 2022 imports were reported at 268,000 mt, dramatically up from the 76,000 mt imported in April 2021. Saudi Arabia accounted for about one-third of the imports with 98,000 mt.

UAN

Eastern Canada, Eastern Cornbelt, France, Market Watch, Northeast, Northern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf:

NOLA UAN barge price ideas continued to soften, falling to $575-$590/st ($17.97-$18.43/unit) FOB, down from the week-ago $600/st ($18.75/unit) FOB.

Eastern Cornbelt:

The UAN-32 market was steady at $640-$660/st ($20.00-$20.63/unit) FOB regional terminals in the Eastern Cornbelt, with the low confirmed at Cincinnati, Mount Vernon, Ind., and Peru, Ill., and the high at Terre Haute, Ind.

The UAN-28 market reportedly slipped to a low of $535-$540/st ($19.11-$19.29/unit) FOB Cincinnati, down from the last offers at $560-$565/st ($20.00-$20.19/unit) FOB.

Western Cornbelt:

The UAN-32 market was steady at $630-$650/st ($19.69-$20.31/unit) FOB in the Western Cornbelt, with the St. Louis market remaining at the $640/st ($20.00/unit) FOB level for the last offers. New prices out of Oklahoma production points reportedly dropped to $595-$605/st ($18.59-$18.91/unit) FOB, down from earlier reports of $640/st ($20.00/unit) FOB.

Northern Plains:

UAN-32 pricing in Minnesota fell to $675-$685/st ($21.09-$21.41/unit) FOB, down $5/st from last report, with the low confirmed at Winona and the high at Pine Bend. The UAN-28 market in central and eastern North Dakota dropped to a low of $550/st ($19.64/unit) FOB in early June, down significantly from the $595-$600/st ($21.25-$21.43/unit) FOB level reported in mid-May.

“We expect sidedress to pick up this week once it dries out from the last storms,” commented one source at midweek.

Northeast:

The UAN market FOB Baltimore, Md., continued to be quoted at the $690/st ($21.56/unit) level for UAN-32 and $637/st ($21.23/unit) for UAN-30. UAN-32 pricing out of terminals in upstate New York was reportedly down a full $100/st, however, to $650/st ($20.31/unit) FOB for new June sales.

In the Southeast, new UAN-32 offers at coastal terminals in Georgia were quoted at $600-$614/st ($18.75-$19.19/unit) FOB on June 1, down from the last reported range of $625-$640/st ($19.53-$20.00/unit) FOB.

“As normal, the week over Memorial Day is very busy with fertilizer and crop spraying,” commented one regional source. “We have seen some cutbacks on fertilizer. While we hear that some customers did not put any nitrogen on their corn crop other than manure until sidedressing in hopes that nitrogen comes down, what we hear more from growers is that sidedressing UAN is where they are planning to cut back on their nitrogen use if UAN and urea prices remain high.”

Eastern Canada:

The UAN-28 market was pegged at C$925/mt (C$33.04/unit) FOB in Eastern Canada, with UAN-32 pricing holding at the C$1,068/mt (C$33.38/unit) FOB level in Ontario.

France:

Sources said UAN prices in France have weakened further, in line with falling ammonia and urea prices. Little in the way of fresh buying activity was reported, however.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Canada, Eastern Cornbelt, Indonesia, Market Watch, Northeast, Northern Plains, Southern Plains, Thailand, Turkey, U.S. Gulf, Western Cornbelt

U.S. Gulf:

The NOLA ammonium sulfate barge market renewed its downward trend after a holiday lull. New business was pegged in the $610-$630/st FOB range, down from the earlier $630-$665/st FOB.

Eastern Cornbelt:

Granular ammonium sulfate prices reportedly dropped to $635-$675/st FOB in the Eastern Cornbelt, down significantly from the last reported range of $675-$705/st FOB, with the low confirmed in Cincinnati at midweek.

In the Great Lakes region, the last ammonium sulfate offers at Toledo were confirmed at the $715-$725/st FOB level.

Western Cornbelt:

The granular ammonium sulfate market was pegged at $640-$675/st FOB in the Western Cornbelt, down from $675-$690/st FOB at last report.

Northern Plains:

The granular ammonium sulfate market dropped to $675-$705/st FOB and $690-$720/st DEL in the Northern Plains.

Southern Plains:

NeuAG LLC on June 1 announced expanded availability of spray-grade ammonium sulfate at Levelland, Texas. The new source location is priced at $715/st FOB for 51 pound bags. Pricing for spray-grade ammonium sulfate at Clute, Texas, is $750/st FOB for 51 pound bags and $650/st FOB for bulk product.

Northeast:

Ammonium sulfate prices were quoted at $690-$700/st FOB and $695-$745/st DEL in the Northeast, depending on location, down from the last reported range of $725-$775/st DEL. “I don’t think spring is over,” commented one source. “A lot of topdress still to go on.”

Eastern Canada:

The ammonium sulfate market in Eastern Canada was quoted at C$1,035-$1,075/mt FOB in early June, down just slightly at the low end of the range.

China:

Reduced demand in Southeast Asia and softer urea prices have pressured Chinese export prices. Sources reported standard caprolactam grade amsul is now at $270/mt FOB, with granular going for $300/mt FOB.

The price reduction on the standard material was expected as prices slowly slipped in the past few weeks. Sources said the decline picked up speed after Indonesia scrapped its buying tender. Sources said the move came because the need for amsul as a cheaper alternative to urea is diminishing with falling urea prices.

Indonesia:

Indonesia just recently released the first quarter import numbers. January-March ammonium sulfate imports were reported at 179,000 mt, according to Trade Data Monitor, down about 53% from the 284,000 mt imported during the same period in 2021.

March 2022 imports were reported at 48,000 mt, compared to 82,000 mt imported during March 2021. China dominated the March market with 53,000 mt.

Brazil:

Prices have come off, as they have in Asia. Sources now report the price at $350-$400/mt CFR for granular amsul.

Rondonópolis prices also showed the lack of interest in amsul, with levels dropping to $490-$560/mt FOB ex-warehouse. The reason for the decline in Brazil is the same as elsewhere, with falling urea prices making amsul less attractive as a substitute.

Thailand:

January-April imports of amsul were reported at 111,000 mt, according to Trade Data Monitor, down slightly from the 123,000 mt imported during the same period in 2021.

April 2022 imports were reported at 67,000 mt, up slightly from the 64,000 mt imported in April 2021. China supplied the bulk of the tonnage at 53,000 mt.

Turkey:

Imports for January-April 2022 were reported at 575,000 mt by Trade Data Monitor. This is a 51% increase from the 380,000 mt imported during the same period in 2021. The bulk of the purchases during this period were at a time when urea prices were rising, making amsul a viable alternative.

April 2022 imports were reported at 65,000 mt, down 43% from 115,000 mt in April 2021. China and Belgium almost split the orders, at 32,000 mt and 30,000 mt, respectively.

DAP/MAP

Brazil, Central Florida, China, DAP/MAP, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Russia, Saudi Arabia, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida:

DAP trucks loading from Central Florida were steady at $945/st FOB for the week, unmoved from the previous report. Posted pricing on truck-loaded MAP was also flat at $945/st FOB.

Sellers reduced North Florida MAP truck offers by $50/st on June 2, leaving that product in the $890-$940/st FOB range for the full week, below $940/st FOB reported previously.

U.S. Gulf:

NOLA DAP and MAP barge values fell sharply during the week, with levels for both products notching prices below the $800/st FOB mark for the first time since February.

DAP volumes were reported trading at a $750/st FOB low on May 31, falling from the week-ago $820/st FOB bottom. Players described early-week trading at $780/st FOB, with offers largely returning to the $800s/st FOB level toward the end of the week, with no takers.

“I can’t find another DAP offer other than (the) $800s it was trading at last week, and no one wants to bid above the $750 for fear that the same thing or worse will get offered next week to push it lower,” said one trader.

MAP pricing also declined, with players noting a $780/st FOB trade concurrent with the lower DAP movement on May 31, following early-week offers closer to the prior week’s $840/st FOB floor. Players mentioned topside demand for prompt MAP barges in the $820-$840/st FOB range during the week due to potential export opportunities available to stronger markets in Latin America.

Sources were divided on the reasons for the week’s lower pricing, with some citing slow application or ongoing fears of potential inventory carryover. Others believed the price drop represented a possible index play, citing both limited volumes available at the reduced levels and the lack of recurring offers recorded at that price through June 2.

“(There is) not a lot of justification for these levels as the U.S. was already the cheapest in the world,” argued one market player.

DAP barge pricing for the week was reported in a wide $750-$780/st FOB range, falling from $820-$830/st FOB in the prior report. MAP barges softened to $780-$840/st FOB, down from $840-$880/st FOB at last report.

U.S. Exports:

A quiet week on the Gulf phosphate DAP and MAP markets left pricing for both products in the $1,080-$1,100/mt FOB range, unchanged from the prior report. The growing disparity between NOLA barge pricing and a number of offshore markets prompted increased arbitrage interest from players with export capacity, sources indicated.

Eastern Cornbelt:

DAP pricing slipped again to $870-$920/st FOB in the Eastern Cornbelt, down some $15-$40/st from last week. The Cincinnati market began the week in the $910-$920/st FOB range before another drop on June 2 pushed offers to the $870-$895/st FOB level at that location.

MAP was quoted at $875-$940/st FOB in the region, depending on location and time of the week, with the low again confirmed at Cincinnati on June 2. The Ottawa, Ill., market was pegged at the $900/st FOB level for both DAP and MAP at midweek.

In the Great Lakes region, the last DAP offers were reported at $930/st FOB Toledo, with MAP pegged at the $1,000/st FOB mark out of spot Michigan warehouses.

Western Cornbelt:

DAP pricing was reported at $875-$910/st FOB in the region, down another $15-$30/st, with the low confirmed at St. Louis. MAP fell in the $890-$935/st FOB range, down from the prior week’s $900-$950/st FOB, with the St. Louis market pegged at $890-$910/st FOB.

Northern Plains:

DAP pricing reportedly slipped to $890-$910/st FOB St. Paul, with MAP reported at $900-$920/st FOB at that location. Delivered green MAP in western North Dakota was pegged at the $985/st level in early June, down $45/st from last report.

Northeast:

New DAP offers in the Northeast were confirmed at $925-$940/st FOB, down from $950-$980/st at last report. MAP was quoted in a broader range at $970-$1,010/st FOB in the region, with the low reported at East Liverpool, Ohio, and the high at Fairless Hills. Pennsylvania sources also confirmed $980/st DEL pricing for MAP in early June.

“P and K were down quite a bit this spring,” commented one regional contact. “Between wet weather and high prices, applications appear to have been skipped or reduced.”

In the Southeast, Nutrien dropped its phosphate prices $50/st on June 2, with DAP moving to $840/st FOB Aurora, N.C., and MAP to $890/st FOB Aurora and White Springs, Fla.

Eastern Canada:

MAP pricing in Eastern Canada was quoted at C$1,465-$1,475/mt FOB, down C$10-$20/mt from last report. The DAP market at Montreal was down a full C$40/mt, to C$1,455/mt FOB in early June.

Saudi Arabia:

Cargoes reported sales into a number of international markets that pulled Saudi Arabia DAP and MAP prices into a wide $700-$1,070/st FOB range in recent trading.

Russia:

An announcement by Moscow that the export of “complex fertilizers” would not be limited in June led sources to understand that DAP and MAP exports might step up.

At the same time, the U.S. issued a notice that the shipment of Russian fertilizers would be exempt from the sanctions placed on Russia because of its invasion of Ukraine. The move by the U.S., said one trader, could release more tons into the market, easing concerns by major buyers such as Indian and Brazil.

China:

Sources said pricing ideas for DAP out of China have softened. While no deals have been confirmed, sources said prices are now being discussed at $960/mt FOB.Phosphate exports are facing the same potential delays in customs approvals as nitrogen product. Sources said clearances are now taking 60-120 days instead of the previous 30-60 days.

Brazil:

The price of MAP softened marginally at the top end of the range, to $1,100-$1,180/mt CFR. Sources said buyers are taking only what they need, while also pushing for sub-$1,100/mt CFR deals.

One of the arguments for lower prices is the growing line-up of vessels. Sources said ships bearing Russian material are being booked faster than they can be unloaded.

Rondonópolis also showed a drop in MAP pricing, to $1,190-$1,270/mt FOB ex-warehouse. Buyers point to plentiful supplies as a pushback against efforts by suppliers to at least hold the line on pricing.

TSP

Eastern Cornbelt, Market Watch, Triple Superphosphate, U.S. Gulf, Western Cornbelt

U.S. Gulf:

Sources quoted NOLA TSP barge price ideas in the $700-$750/st FOB range, falling from $775-$800/st FOB at last report.

Eastern Cornbelt:

TSP pricing at Cincinnati was reported at the $760-$790/st FOB level in early June, down another $40-$70/st from the previous week.

Western Cornbelt:

The TSP market fell to $760-$790/st FOB in the Western Cornbelt, down significantly from the last reported $830-$850/st FOB range.

Phosphoric Acid

Eastern Cornbelt, India, Market Watch, Northern Plains, Phosphoric Acid, Western, Western Cornbelt

Eastern Cornbelt:

June phos acid postings in the Eastern Cornbelt dropped to $14.00/unit rail-DEL from a major producer, down from $17.50/unit rail-DEL in May.

Western Cornbelt: Phos acid prices fell to $14.00/unit rail-DEL in the Western Cornbelt for June tons, down from $17.50/unit in May.

Northern Plains:

Phos acid pricing for June shipment was quoted at $14.00/unit rail-DEL in the Northern Plains, down $3.50/unit from May’s $17.50/unit rail-DEL posting.

Western U.S.:

Itafos on June 1 reposted phos acid at $1,625/ton of P2O5 for rail-DEL product in California, Arizona, Oregon, Washington, Idaho, and Montana.

India:

First-quarter contracts for phosphoric acid sold to buyers in India were tabbed at $1,530/mt P2O5 CFR. Firming values were expected in the next round of contracting.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt:

The 10-34-0 market slipped to $850-$860/st FOB in the Eastern Cornbelt, down some $10-$40/st, with very few sales reported to confirm the new pricing level.

Western Cornbelt:

New 10-34-0 prices were reported at $840-$860/st FOB in the Western Cornbelt.

Northern Plains:

Sources continued to report the last 10-34-0 offers at $900-$910/st FOB and $910-$920/st DEL level in the Northern Plains for spring tons.

Northeast:

The 10-34-0 market remained at $900/st FOB terminals in upstate New York, unchanged from last report.