All posts by mickeybarb@charter.net

Muriate of Potash

U.S. Gulf:

The NOLA potash barge market tightened to $750-$770/st FOB from the week-ago $740-$795/st FOB range.

Eastern Cornbelt:

Potash pricing was reported at $770-$785/st FOB in the Eastern Cornbelt, reflecting another $10-$15/st decline, with the low confirmed at Cincinnati and Ottawa as the week advanced. Potash prices in the Great Lakes region were commonly reported at the $790/st FOB level for red granular tons in early June.

Western Cornbelt:

Potash pricing slipped to $770-$785/st FOB in the Western Cornbelt, depending on location, with the low reported at St. Louis.

Northern Plains:

Sources quoted potash pricing at $780-$795/st FOB St. Paul in early June. The latest prices FOB Saskatchewan mines for 2Q tons were reported at $728-$740/st after netbacks, depending on grade and destination.

Northeast:

Potash prices were also under pressure in the Northeast. New warehouse levels were confirmed in the $795-$805/st FOB range, with the low in Pennsylvania and the high at East Liverpool.

Eastern Canada:

The potash market in Eastern Canada was pegged at C$1,050-$1,056/mt FOB warehouses, essentially unchanged from mid-May levels.

Brazil:

Prices for MOP in Brazil dipped marginally to $1,100-$1,200/mt CFR.

Buyers were encouraged by reports that the U.S. was notifying shippers and insurance companies that moving Russian fertilizers would not violate the sanctions against that country. The move reportedly opened a window of opportunity for buyers to book numerous cargoes.

The Rondonópolis market softened a bit to $1,160-$1,250/mt FOB ex-warehouse. Supplies are said to be sufficient, but tight.

Thailand:

January-April 2022 imports of MOP were reported at 253,000 mt by Trade Data Monitor. This is down 11% from the 283,000 mt imported during the same period last year.

April 2022 imports were reported at 83,000 mt, up 18% from the 71,000 mt bought in April 2021. Canada was responsible for about half of the April imports at 41,000 mt. Russia accounted for another quarter of the imports at 20,000 mt.

EPA Proposes Expanding State, Tribal CWA Authority

The U.S. EPA on June 2 unveiled a proposal that would strengthen state and tribal authority to block projects like pipelines, highways, export terminals, and dams over Clean Water Act (CWA) concerns, saying the power had been improperly restricted by the Trump administration.

The proposed rule expands the power of states, territories, and tribes to grant or deny water quality certificates under Section 401 of the CWA. EPA said the prosed rule is part of the regulatory process announced in May 2021 to revise the 2020 CWA Section 401 Certification Rule, and would be more consistent with the statutory text of the 1972 CWA.

“For 50 years, the Clean Water Act has protected water resources that are essential to thriving communities, vibrant ecosystems, and sustainable economic growth,” said EPA Administrator Michael S. Regan. “EPA’s proposed rule builds on this foundation by empowering states, territories, and Tribes to use congressionally-granted authority to protect precious water resources while supporting much-needed infrastructure projects that create jobs and bolster our economy.”

Under the Biden administration’s proposal, a state would be allowed to determine whether “any aspect” of an entire federally-licensed pipeline or other project will comply with its water quality standards and then deny certification of the project within state borders if it chooses. States and tribes would also be able to waive certification, grant it, or do so with conditions.

If finalized, the EPA’s proposed Water Quality Certification Improvement Rule would scrap the Trump administration’s 2020 CWA 401 Certification Rule, which curtailed states’ ability to object to infrastructure projects. The rule remains in effect and has resulted in a cascade of litigation that reached the U.S. Supreme Court earlier this year, Bloomberg Law reported.

The EPA is accepting comments on the proposed rule for 60 days beginning on the date it is published in the Federal Register.

Sulfur

Tampa:

Genscape reported increasing activity from the 190,000 barrel/d DU-2 crude distillation unit (CDU) at the Phillips 66 Wood River, Ill., refinery on May 31, although the unit remained below normal operational levels.

The CDU was reported shutting on March 7 during a planned turnaround. Decreased activity was observed from a 48,000 barrel/d fluidic catalytic cracking unit (FCC) at the site on May 31. The company reported an unspecified equipment breakdown at Wood River on May 29.

Tampa molten sulfur contracts were quoted at $481/lt CFR for delivery in the second quarter, rising $199/lt from the prior $282/lt CFR contract.

Refinery utilization moved lower for the week ending May 27, according to Energy Information Administration (EIA) data. Capacity was noted at 92.6% for the week, a 0.6% decline from the 93.2% rate reported previously, but holding above both the year-ago 88.7% and the five-year average of 87.6%.

Daily crude inputs hovered above the 16 million barrel/d mark, registering an average 15.033 million barrels/d through the period, a 236,000 barrel/d decline from the 16.033 million barrels/d reported previously.

U.S. Gulf:

Valero on June 1 restarted a 32,000 barrel/d catalytic reformer at the company’s Meraux, La, plant, according to Genscape. The unit was taken offline during a planned facility-wide maintenance shutdown on March 30. Several units, including a 50,000 barrel/d vacuum distillation unit and a 55,000 barrel/d hydrocracker, were noted operating below normal restart levels on June 1.

A June 1 flaring event reported at the Motiva Port Arthur, Texas, refinery was not accompanied by any observable unit shutdowns, Genscape indicated.

Sulfur cargos loading from the U.S. Gulf continued to track in the $470-$480/mt FOB range, steady from one week earlier.

Brazil:

Recent Brazil spot imports remained at $520-$525/mt CFR, players said, unchanged from the previous spread. Contract values were quoted in the $480-$485/mt CFR range for the second quarter.

Vancouver:

Last-done pricing on prilled sulfur exported from Vancouver held steady in the $475-$480/mt FOB range through the week.

Alberta:

Suncor successfully restarted the 38,000 barrel/d FCC at the company’s Edmonton, Alta., facility on June 1, Genscape reported, after the unit was powered down for maintenance activities on March 29. A 94,000 barrel/d naphtha hydrotreater taken offline at the same time remained offline. The plant’s 60,000 barrel/d CDU was noted restarting on May 26.

An activity increase was reported from the 48,000 barrel/d RHC 3 hydrocracker and an integrated 65,000 barrel/d hydrotreater at Shell’s Scotford, Alta., upgrader on May 30, although both units remained shy of normal operating levels. The units reportedly went offline for maintenance on March 15.

Sulfur netbacks to suppliers located in Alberta continued to be pegged in the $366-$411/mt FOB range, and included both molten tons contracted into the U.S. and prilled material selling internationally on the Vancouver export market.

West Coast:

Genscape reported a flaring event at the PBF Energy refinery in Torrance, Calif., on June 1. The activity coincided with the start of unspecified maintenance activities scheduled to kick off the same day.

Solid sulfur loading from the West Coast remained in the$475-$480/mt FOB range, unchanged from one week earlier. Sources pegged molten sulfur contracts at $375-$390/lt FOB for delivery in the second quarter, rising from $230-$245/lt FOB in the first quarter.

China:

Sources continued to call the recent China import sulfur market in the $520-$525/mt CFR range, steady from the prior report.

Qatar:

Muntajat sulfur offers for June were heard rising to $490/st FOB Ras Laffan, a $30/mt increase over the $460/mt FOB level noted for the prior period.

Sulfuric Acid

U.S. Gulf:

Gulf import cargo prices were reported at $270-$280/mt CFR, above the $265-$270/mt CFR level noted previously.

Gulf Coast:

Sources described Gulf Coast contracts in the $195-$280/st DEL range for 2022.

Midwest:

Midwest pricing was quoted at $195-$280/st DEL for annual agreements, sources indicated.

West Coast:

Contracts governing sulacid delivered to West Coast locations were reported in the $185-$270/st DEL range for 2022.

Brazil:

Brazil import sulfuric acid values were heard at $280-$285/mt CFR, above the $275-$280/mt CFR range in the prior report.

Ammonium Thiosulfate

Eastern Cornbelt:

The ammonium thiosulfate market remained at $650-$685/st FOB in the Eastern Cornbelt for the last confirmed offers, depending on location.

Western Cornbelt:

Ammonium thiosulfate was unchanged at $650-$675/st FOB in the Western Cornbelt, depending on location.

Northern Plains:

Ammonium thiosulfate pricing was quoted at $640/st FOB in central and eastern North Dakota, down from $675/st FOB at last report.

Eastern Canada:

The ammonium thiosulfate market was unchanged at C$879-$970/mt FOB in Eastern Canada, depending on location and supplier.

Crops/Weather

Eastern Cornbelt:

U.S. Drought Monitor

Strong thunderstorms churned through northern Ohio at midweek, producing damaging winds, heavy rain, and large hail in some locations. A flood advisory was in effect for several counties in the wake of the storms.

Much of the Eastern Cornbelt enjoyed calmer weather during the week, however, which benefited growers trying to wrap up spring planting. Highs in the mid-80s were reported in central Indiana at midweek, with scattered showers expected across the state as the week progressed.

Similar conditions were reported in Illinois, where highs topped out in the 70s and low-80s during the second half of the week. A greater chance of rain was in the weekend forecast for much of the state. In Michigan, the week began with highs well into the 80s before cooler weather settled in for the balance of the week.

Fully 81-89% of the corn crop was planted in Indiana and Illinois by May 29, along with 70-75% of the soybeans. Both states were tracking ahead of their five-year averages, while Ohio was essentially equal to its average pace with 72% of the corn and 56% of the soybeans seeded by that date.

In the Great Lakes region, corn planting had progressed to 80% complete in both Michigan and Wisconsin, with soybean planting estimated at 73% complete in Wisconsin and 69% in Michigan. Both states were either ahead of or equal to the five-year average pace.

Western Cornbelt:

Corn, Wheat, Soybean Index

After a band of strong thunderstorms in parts of Iowa on Memorial Day, sources reported seasonal temperatures in the upper-70s and low-80s across much of the state during the balance of the week, along with generally dry weather. Forecasts warned of cooler, wetter weather for much of Iowa during the second week of June, however.

Highs in the 70s and 80s were also common across Missouri and Nebraska as the week advanced, although some thunderstorms were reported across northwestern Missouri on May 31. The Nebraska Panhandle was also bracing for potentially strong thunderstorms on June 3.

A busy planting pace in late May allowed growers to equal or exceed the five-year averages for all crops in the region. Corn planting as of May 29 was 91-95% complete in the Western Cornbelt, while soybean planting had progressed to 85-87% complete in Iowa and Nebraska and 52% in Missouri.

Missouri growers also had 90-93% of the rice and cotton planted by May 29. Sorghum planting in Nebraska was reported at 55% complete by that date, also tracking slightly ahead of the average pace.

Northern Plains:

Unseasonably cool, wet weather continued to delay spring planting across much of North Dakota and Minnesota. Although highs in central and southern Minnesota pushed up to the mid-70s during the week, rain and colder weather was once again on tap for the coming weekend. Most of Minnesota was also under a Level 2 or 3 risk of severe weather on Memorial Day.

Highs in the mid- to upper-60s were common across the Dakotas during the week as the region continued to dry out from another round of late May showers. Unfortunately, more rain was in the forecast for the weekend and into the following week, further delaying spring planting across the region.

Although corn planting had progressed to 82-86% complete in Minnesota and South Dakota by May 29, just 56% of the crop in North Dakota was seeded, well behind the 56% five-year average. Soybean planting lagged even more at 61% complete in South Dakota, 55% in Minnesota, and only 23% in North Dakota.

Just 60-65% of the region’s sugar beets and 22-23% of the sunflowers were seeded by May 29. While the planting of spring wheat was on track in South Dakota, progress in Minnesota and North Dakota was rated at only 53-59% complete, well behind the 91-95% average. Barley planting also lagged at 62% complete in North Dakota and 48% in Minnesota, compared with 91-95% on average.

Northeast:

Cooler temperatures and scattered thunderstorms dominated the weekly weather forecast for much of New England.

High heat and humidity blanketed much of Pennsylvania and Maryland early in the week, with highs climbing to the upper-80s and low-90s in some locations. Cooler weather was on tap for both states as the week progressed, however, along with frequent showers.

The favorable weather allowed growers to make significant strides on planting. Pennsylvania growers had 63% of the corn crop planted by May 29, USDA reported, still lagging the average pace, but a significant jump from the prior week’s 43% progress.

Eastern Canada:

The week began with high heat and humidity across much of southern Ontario, prompting a weather statement from Environment Canada. The unseasonably hot weather sparked a band of strong thunderstorms at midweek that caused widespread power outages, with much cooler temperatures moving in after the storms.

The last days of May brought unseasonably hot weather to parts of Quebec as well, while most of the Maritimes stayed breezy and cool.

Sources reported a burst of planting activity in late May. “Things are starting to wind down a bit,” commented one source on June 1. “I would say most of the corn is in, with a few spots to finish off. We’re hard at the beans now, and if weather holds we should be over the hump by the weekend.”

Sources talked of slightly softer fertilizer pricing in Eastern Canada, fueled in part by the weakness in NOLA and Midwest prices and by a reduction in spring application volumes. No fill programs are expected until later in June.

“We are still fairly insulated from the price shocks in NOLA/Midwest,” said one contact. “Some bleed through across the border, but very limited. We have heard some U.S. wholesalers are limiting access because product is of Russian origin.”

“Movement is down 25-30% this year in the area in general,” added another source. “If we get rain there may be some UAN demand, however, it’s not looking too promising on that either.”