All posts by mickeybarb@charter.net

FieldReveal, AgWorks Expand Ag Tech Partnership

News, News Briefs

FieldReveal LLC, a cloud-based precision ag system and comprehensive field mapping and data business based in Watertown, S.D., announced on April 15 that it has established an operating agreement with AgWorks LLC, an ag retail software company based in Davenport, Iowa, that operates as a wholly-owned subsidiary of The McGregor Company.

The two companies will partner on developing agronomy and analytics software tools for ag retailers, combining FieldReveal’s field data and variable rate fertilizer prescriptions with AgWorks’ HighQ Decision Support System (DSS), which provides growers with analytics tools to manage multiple variables that affect profit per acre.

As of April 15, Greg Duhachek began serving as Co-CEO of FieldReveal and AgWorks, with Nick Waite serving as Chief Operating Officer of FieldReveal, Zach Locy as Vice President, Product Development of FieldReveal, and Matt Hull as Co-Vice President, Sales of FieldReveal and AgWorks. All other employees of both companies will remain unchanged.

The two companies announced an earlier partnership in January 2020 to jointly deliver zone-based variable rate and decision support software to retailers throughout North America. FieldReveal was formed in 2017 as a joint venture between Agtegra Cooperative, Central Valley Ag, Landus Cooperative, and Winfield United, with The McGregor Company joining the jv in 2020.

IntelinAir Launches Real-Time Field Data Technology

News, News Briefs

IntelinAir Inc., an automated crop intelligence company that uses AI and machine learning to model crop performance, announced the launch on April 5 of AGMRI® Enterprise, a new service available through a smartphone app that provides ag retailers and crop advisors with real-time field information to make better cropping decisions for their grower customers.

AGMRI®, the Indianapolis-based company’s flagship product, aggregates and analyzes data obtained through high resolution aerial, satellite, and drone imagery, as well as weather conditions, scouting, and other equipment to provide Smart Alerts on specific problems in fields. AGMRI® Enterprise provides a current and aggregated view of what is happening in fields with regularly scheduled flights throughout the season.

“Through AGMRI® Enterprise, we are honing in on real-time alerts to save retailers time, but also provide them with the confidence they need in making recommendations to their customers,” said Kevin Krieg, Director of Product Marketing for Itelinair. “Our retail customers will be able to elevate their management recommendations with a clear understanding of what is happening in individual fields, earlier than ever before, and gain aggregate insights for their region throughout the growing season.”

Satellite imagery is offered in the U.S. and Canada, the company said, while aerial imagery is currently offered in select counties in Illinois and Indiana, with expansion planned for future growing seasons.

“We provide the ability for retailers to know big-picture what is happening in a field and then narrow down specific locations within that field to scout if an area raises an alert through a flight,” Krieg said. “It’s the ‘trust but verify’ situation. Retailers are the agronomy experts; we are giving them a tool to increase their ability to detect issues and provide direct communication to their customers about what they are seeing or not seeing within a field.”

Casale Acquires Green Granulation Ltd., Completes N-Based Fertilizers Offering

Calcium Ammonium Nitrate, China, Europe, News, News Briefs, Urea

Casale SA, Lugano, announced on April 20 that it has acquired Hong Kong-based Green Granulation Ltd. (GGL), a company involved in the design and construction of urea and calcium ammonium nitrate (CAN) granulation systems and owner of proprietary technology. Green Granulation has a subsidiary office in Beijing.

Casale said the acquisition is part of a broader strategy aimed at strengthening Casale’s position in the market that “leverages the widest integrated portfolio of efficient technologies.” It did not disclose the value of the transaction.

“The integration enables Casale to embrace once more a one-stop-shop approach at a larger scale offering the entire production cycle of N-based fertilizers to its customers, from raw materials to the final products,” the Switzerland-based company said.

According to Casale, among the strategic assets being acquired as part of the transaction, GGL’s “cold recycle granulation” (CRG) technology represents the most advanced fluidized bed technology available. The technology has been designed to accept a lower concentration of urea melt feed (ca 96 percent urea + Biuret), Casale said.

“This acquisition not only adds a new technology that perfectly fits into our portfolio, but it also strengthens our presence in the local Chinese market,” said Casale CEO Federico Zardi.

“Casale and GGL started cooperating some years ago, and today’s investment decision confirms our strong confidence in the CRG granulation process, which has been also incorporated in the new 594,000 mt/y Casale’s urea plant that will be completed in the first half of 2025 in Yangiyer, Uzbekistan,” he said (GM April 1, p. 29).

OCI Weighs Wever, Beaumont for N Expansion; Methanol-Related Facility Also Planned

Ammonia, Europe, Featured, Methanol, News, Nitrogen, Texas, UAN, Western Cornbelt

OCI NV, Amsterdam, via subsidiary OCI Clean Ammonia LLC, is weighing a major nitrogen production expansion at one of its two U.S. locations – Wever, Iowa, or Beaumont, Texas – according to a March 28 tax abatement application with the Texas Comptroller.

The project would involve the construction of two 3,000 mt/d ammonia units based on imported hydrogen and nitrogen. The project would be an ammonia synthesis expansion via these two additional loops.

The project also envisions a 2,200 mt/d urea plant next to the ammonia facilities, converting part of this ammonia together with carbon dioxide (CO2) from over-the-fence to urea. The end product is urea solution of 72 percent urea in water that will be converted into diesel exhaust fluid (DEF) in various concentrations.

Alternatively, the urea can also be converted into UAN when mixing with ammonium nitrate solution, with the latter created by reacting ammonia and nitric acid.

To facilitate UAN production, a nitric acid plant will also be built with a capacity of 1,530 mt/d.

Various storage tanks would be built to accommodate there fertilizer products.

Construction of the projects would take 24-30 months, with commissioning and start-up to follow.

According to the documents in Texas, OCI Clean Ammonia would save a total of $208.9 million in property taxes through 2037, with normal rates commencing in 2038.

In the meantime, OCI Fuels USA Inc. has also submitted a tax abatement application for a renewable methanol-to-gasoline (MTG) facility and a renewable syngas facility, which will feed a methanol synthesis loop to make green/bio-methanol, either adjacent to an existing affiliate methanol/ammonia production facility in Beaumont or elsewhere on the U.S. Gulf Coast, or at its ongoing operations in the Middle East, North Africa, or Europe.

The proposed facility would convert bio-methanol into bio-gasoline for shipment into the European markets. Once operating, the MTG facility production capacity will be 100,000 mt/y.

The feedstock for the bio-methanol will be produced from the renewable syngas facilities. The latter would convert biomass to bio synthesis gas. Dried biomass feedstock (local wood chips) would be used. The company said once the green syngas facilities are operating, they will produce renewable natural gas (RNG).

Using the syngas produced, the company said it proposes to construct a methanol synthesis loop capable of producing at least 2,500 mt/d or 1 million mt/y of green bio-methanol.

Construction of the OCI Fuels facility is expected to take 24-30 months, with commissioning and start-up to follow. The facilities are expected to be fully operational in 2027.

OCI Fuels is seeking a property tax savings of $154.1 million through 2037, with normal rate resuming in 2038.

The OCI Ammonia project is valued at $2.8 billion and the OCI Fuels at $2.075 billion, according to local press reports, citing the documents.

In the meantime, Arbor Renewable Gasoline Phase 1 LLC, a group composed of executives formerly involved with OCI’s Natgasoline plant in Beaumont, have sought tax incentives from Texas and Louisiana. Arbor’s plant could be adjacent to the OCI Fuels.

Arbor plans to build a renewable gasoline or renewable hydrogen plant utilizing 1,000 tons per day of wood-waste as feedstock. The plant would produce carbon dioxide on an industrial scale. The initial investment is put at $325 million with plans for eventual expansion.

The project would use GTI developed bubbling fluidized bed biomass gasification technology that processes one-inch chipped wood into syngas, which will be converted into crude methanol and finally into gasoline, LPG, and CO2. Alternatively, the syngas can be used to create hydrogen and CO2.

Arbor said the primary product will be renewable gasoline, which will be used to satisfy low carbon fuel standards in California and other markets.

In addition, Arbor said that during normal operations, the facility will produce three waste gas streams and LPG, and these can be burned in a gas turbine to generate renewable electricity for use by the facility. It expects to produce 11.5 megawatts, which the facility can use to meet over 75 percent of its power needs.

Arbor is hoping to begin construction in first-half 2022 with completion in late 2023.

Arbor said the plant will produce very few emissions, as the majority of the CO2 will be captured and sequestered in an approved storage facility, As a result, the product manufactured will be considered carbon negative, meaning that it remove more carbon from the atmosphere than it produces.

Arbor requested a tax savings from Texas of some $21 million through 2033, with normal rates applicable thereafter.

Ammonia

Ammonia, Black Sea, China, Eastern Canada, Eastern Cornbelt, India, Market Watch, Middle East, North Africa, Northern Plains, Northwestern Europe, Southeast Asia, Tampa, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf/Tampa:

Tampa anhydrous ammonia business for May has been concluded at $1,425/mt CFR, down $200/mt from April’s $1,625/mt CFR. Sources had been predicting at least a rollover or a drop by as much as $300/mt. They cited Incitec Pivot Ltd.’s announcement that its Waggaman, La., ammonia plant has returned to production, along with recent news that European ammonia plants are coming back up due to lower natural gas prices.

U.S. Imports:

July-February ammonia imports were reported at 1.72 million st in the U.S. Census Bureau’s most recent report, up 7.2 percent from the year-ago 1.60 million st. February imports were off 11.5 percent, however, to 171,872 st from 194,187 st in February 2021.

Eastern Cornbelt:

The ammonia market was steady at $1,450-$1,550/st FOB in the Eastern Cornbelt, depending on supplier and location, with the low reflecting reference pricing from Koch and the high reported for CF pricing in Illinois and Indiana. The market FOB Lima, Ohio, remained at the $1,475/st level at mid-month.

Western Cornbelt:

The ammonia market was steady at $1,425-$1,450/st FOB in the Western Cornbelt, depending on location, with the low reported at Beatrice, Neb., and the high at Palmyra, Mo., and out of most Iowa terminals.

Sources reported very little preplant movement taking place due to wet weather, however. “Next week looks much better for application to really go hard,” said one contact.

Northern Plains:

Ammonia pricing edged higher in the Northern Plains. The latest spring offers were quoted at $1,500-$1,525/st FOB regional terminals, up from $1,480-$1,500/st FOB at last report, with the low confirmed at Velva, N.D. Delivered ammonia was pegged at $1,575-$1,600/st DEL in the region, up from the last reported $1,550/st DEL level.

Eastern Canada:

The latest spring ammonia prices were reported at the C$1,680/mt level FOB Courtright, Ont.

Black Sea:

Sources reported that some vessels have entered the Black Sea to deliver product to Bulgaria and Turkey. This route keeps the ships far from the war zone in the north.

With the Ukrainian ports still closed because of the Russian invasion, sources said there is no way to peg a price for ammonia sales. The only business that seems able to be recorded are the sales into Bulgaria and Turkey.

Reportedly, a holder of Russian ammonia offered the product for sale to a Turkish buyer at $1,150/mt CFR, a level sources called very low. The potential buyer demurred, citing the sanctions imposed against Russia by the U.S. and E.U.Sources said some Iranian cargo was also offered to Turkey at $1,200/mt CFR. There was no word if that offer was taken up.

The Gas Cobia will be unloading its cargo of pre-sanctioned Russian ammonia in Bulgaria and Turkey. The vessel was loaded at Ventspils just as the sanctions against Russia took effect. Sources said the initial buyers were nervous about accepting the tons because of the sanctions. Eventually, the ship headed into the Mediterranean Sea as talks were progressing to find a buyer.

India:

Reportedly, some buyers have been picking up small cargoes of Iranian ammonia at $1,100-$1,150/mt CFR. These smaller sales represent the only real spot business going into India. Most of the larger imports taking place are under long-term contracts with major suppliers from the Arab Gulf.

Sources said buyers are pushing to get the price below $800/mt CFR so that the final product, such as DAP, can be priced to fit under the current Maximum Retail Price plan for subsidies. However, the current price – even for the formula-based purchases – is reported in the $900s/mt CFR. There are reports that the Indian government is revisiting its FY2022/23 budget allotments for subsidies.

Northwest Europe:

Sources reported no change in the $1,630-$1,650/mt C&F ammonia price for the area. The slow return to production of European ammonia plants is reportedly helping to hold the line on pricing.

Sources said natural gas prices are slowly coming down, and further declines are expected as demand for home heating wanes with the approach of summer. Even with more gas being made available for industrial use, the ammonia producers are still facing high costs. One trader said the decline in gas prices means the break-even price for 1 mt of ammonia is now in the mid-$900s/mt, where it was above $1,000/mt at the beginning of the month.

Even with stepped up production in Europe, sources said the production will not be able to replace tonnage lost to the sanctions against Russia. Buyers will continue to have to look to other producers from the Caribbean to Southeast Asia for product.

Middle East:

Reportedly, Ma’aden has a cargo available for sale. However, the producer is asking $1,400/mt FOB for it, with no takers so far.

One trader said with demand remaining strong, Ma’aden is in no rush to sell. According to sources, eventually a deal will be made and the price could be pushed higher from the last spot deal at $1,230-$1,245/mt FOB. Alternatively, said one observer, if the market can hold off for a few months, additional production from Oman could cause Ma’aden to accept a lower price.

Reportedly, the Ma’aden plant will not start up until 3Q. The tonnage from that facility is said to already be spoken for. Sources said OCP, the Moroccan phosphate producer, has signed a long-term agreement to take a large portion of the new output. The material will be needed, because OCP no longer has access to the ammonia that once flowed out of the Black Sea. Indeed, as one trader noted, no one has access to any Black Sea ammonia at this time.

The Oman operation is expected to bring another 300,000 mt/y to market in June, leaving many in the industry satisfied that the tightness exhibited in the market earlier this year will soon ease.

Iran has been shopping around as much of its product as it can. Buyers who are willing to cross the U.S. over its sanctions against Iran can usually find what they need at a lower rate than what the Arab producers are offering. Small lots have been sold into India, easing the pressure for product there.

January-March exports from Iran were reported at 116,000 mt, down about 7 percent from the 125,000 mt exported during the same period last year. Trade Data Monitor reported that the main buyers in the first quarter were India at 88,000 mt and Turkey at 23,000 mt.

March 2022 exports of Iranian ammonia were up dramatically at 45,000 mt, compared with 20,000 mt in March 2021 numbers, Trade Data Monitor reported. India took 96 percent of the March tonnage at 44,000 mt.

Southeast Asia:

There is a big gap between what ammonia buyers are willing to pay and what regional sellers are willing to accept. Reportedly, buyers are digging in their heels at $1,000/mt CFR, while producers are equally adamant that the price should be $1,000/mt FOB.

Demand for ammonia in the area is weakening as Western demand for the final products from some of the factories in the area eases off due to higher inflation and interest rates. For now, said sources, buyers are taking what they need and no more. Some excess tonnage is reportedly building up, but not enough yet to cause a dramatic price drop.

Occasional inquiries from non-traditional buyers such as OCP in Morocco are helping stem any drastic drop in prices. However, as OCP and other buyers from outside the region find and secure tons from other areas, that price support could fade quickly.

South Korean ammonia imports for January-March 2022 were reported at 409,000 mt, up from 380,000 mt during the same period last year. Trade Data Monitor reported the main suppliers to South Korea during the first quarter of this year were Indonesia at 171,000 mt and Saudi Arabia at 163,000 mt.

March 2022 imports were reported at 132,000 mt, down about 8 percent from March 2021 imports of 144,000 mt. Indonesia imports of 56,000 mt accounted for 42 percent of the ammonia imports in March. Another 50,000 mt from Saudi Arabia accounted for 38 percent of imports, leaving very little left for other suppliers.

China:

Sources said there was limited demand for imported ammonia given plant shutdowns and cutbacks related to COVID restrictions.

Traders quoted the domestic ammonia market at $300-$400/mt FOB ex-factory against potential export prices in the $900s/mt FOB. The price gap, said one trader, is a result of the Chinese government pushing to build reserves to insulate the domestic market from the higher-priced global market.

January-March imports this year were reported at 80,000 mt, according to Trade Data Monitor, down 77 percent from the 354,000 mt imported during the first quarter of last year. March 2022 imports totaled 17,000 mt – all from Indonesia – compared with 151,000 mt in March 2021.

North Africa:

Sources reported a softening in the ammonia market. AOA in Algeria reportedly settled a deal at $1,200/mt FOB, just a week or so after closing a sale at $1,500/mt FOB.

Major Moroccan buyer OCP reportedly has signed a deal with Ma’aden for a steady supply of ammonia beginning in the second half of the year. Sources said the deal is based on expectations that the new Ma’aden plant will be operating early in the third quarter.

While it waits for the Ma’aden plant to be fully operations, OCP continues to scour the globe looking for product. Occasional forays to Southeast Asia have caused a slight dislocation in that market. One trader noted that OCP does not go that far afield very often, however, so the impact is limited. There are also reports that a vessel for OCP is loading in Argentina.

Urea

Black Sea, Brazil, China, Eastern Canada, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Nepal, Northeast, Northern Plains, South Korea, U.S. Gulf, U.S. Imports, Urea, Western Cornbelt

U.S. Gulf:

NOLA granular urea barges were reported at a flat $750/st FOB, compared to the week-ago $750-$800/st FOB range. Several players cited a lack of trading due to wet weather in the heartland.

U.S. Imports:

July-February urea imports were up 73.8 percent, to 3.65 million st from the prior year’s 2.10 million st. February imports stood at 463,367 st, rising 46.3 percent from the year-ago 316,780 st.

July-February imports from Qatar were reported at 755,257 st, followed by Russia at 533,370 st, Oman at 530,996 st, and Saudi Arabia at 503,904 st.

Eastern Cornbelt:

Urea prices remained under pressure in the Eastern Cornbelt, with the regional market quoted at $810-$850/st FOB, depending on location. The Cincinnati, Ohio, market reportedly fell to $820-$845/st FOB for new offers during the week, down $40/st from the previous week.

Western Cornbelt:

Urea terminal prices continued to fall amid ongoing weakness in the NOLA barge market, with the wet weather cited as a “major concern.” The regional urea market was reported at $790-$820/st FOB, depending on location, with the low end of the range confirmed at St. Louis, Mo.

The Catoosa/Inola, Okla., urea market was pegged at $790-$820/st FOB during the week, down from $835-$845/st FOB at last report.

Northern Plains:

The St. Paul, Minn., urea market was quoted at $820-$840/st FOB during the week, with the Carrington, N.D., price pegged at the $860/st FOB level.

Delivered urea reportedly fell to $875-$905/st in North Dakota, down from recent highs in the $1,000-$1,020/st range, with some sources discussing limited new offers as low as $850-$870/st DEL on a spot basis as the week progressed.

Northeast:

The urea market was quoted in a broad range at $975-$1,025/st FOB in the Northeast, with the low confirmed at Baltimore, Md., and the high reflecting new pricing FOB Fairless Hills, Pa., for tons from a resupply vessel that were expected to be available on April 22.

Eastern Canada:

The urea market continued to strengthen in Eastern Canada, with new spring prices firming to C$1,440-$1,465/mt FOB in mid-April, up another C$15-$25/mt from last report.

India:

A urea tender was finally called, but it is not the one the industry was waiting for. IPL called a tender to close on April 26 for 78,000 mt to be shipped by May 15. The tender calls for 42,750-45,000 mt to go to Mundra and 31,300-35,000 mt to Kakinada.

Reportedly, the tonnage is to make up for product that was not delivered under the February IPL urea tender. Some traders had speculated that once word circulated that the final tons would not be delivered, IPL would call a tender for 100,000 mt to recover its product and test the waters on pricing. Expectations were that a second more traditional tender would be called within a week of the smaller tender’s closing.

Sources still think there will be a larger tender called soon, but some believe the call might wait until the 78,000 mt have vessels nominated and the tonnage locked in.

Reportedly, there is still some concern that even with softening urea prices popping up in conversations around the world, the Indian government will have to adjust its budget to ensure it has enough money to buy and subsidize urea.

The current budget reduced the amount of money available for subsidies. Even before the budget took effect on April 1, sources said the government would have to amend it to accommodate the high prices seen in the global market.

Some relief will be seen once Plat II at the RCF facility in Kakinada is operating. Subsidies for domestic urea are lower than the subsidies necessary for imported product. As a result, the Indian government is encouraging urea producers to re-activate plants shuttered in the past. The NFC facility is expected to start turning out product by the end of the month.

Black Sea:

The only urea possible from the Black Sea will come from the far eastern ports, said sources. Even then, the designation of the whole Black Sea as a war zone by insurance carriers could make the transportation costs dramatically more expensive.

The closure of the Ukrainian ports because of attacks by the Russian army and navy means that no product is coming from the major facilities that once serviced the world.

Sources said, however, that if product could be exported from the area, the most discussed price is in the mid- to upper-$880s/mt FOB. Observers said this price is only talk and not confirmed sales.

Indonesia:

Sources now question the $945/mt FOB reportedly done in the last, but scrapped, tender. Sources said following the scrapping of the tender, Kaltim and buyers went into private talks. The initial reports were that the $945/mt FOB was agreed to by all, but sources said this may not be correct.

For now, however, sources are still calling the last price at $945/mt FOB. They have also said that the trend in the market is for a lower price. One trader said the producers are now claiming they want to focus on the domestic market rather than exports. Traders also said producers are not happy with the lower price trends popping up.

Middle East:

While producers cling to the mid-$900s/mt FOB, sources said buyers were trying to lower the price and grab tons for the pending India tender.

However, the latest tender was not the major event that traders and producers were hoping for. Sources said the 78,000 mt being sought by IPL could easily be handled by urea already available from the Arab Gulf. One observer said there is little incentive for the producers to lower their prices for such a small amount.

While the Arab producers continue to argue for prices in the $900s/mt FOB, sources said their Iranian counterparts are engaging in talks in the $600s/mt FOB. Sources could not point to specific deals at that level, but the discussion fits with a general sense that prices are coming down.

Iranian exports for January-March were reported at 847,000 mt, up about 8 percent from the 784,000 mt exported during the same period last year. The main buyers so far this year have been Turkey at 305,000 mt, Brazil at 114,000 mt, and Oman at 100,000 mt.

March exports were also up, according to Trade Data Monitor, to 418,000 mt versus 315,000 mt in March 2021. Turkey accounted for about one-third of Iranian urea exports in March at 143,000 mt. Brazil took another 27 percent at 114,000 mt, and Mozambique took 63,000 mt, representing 15 percent of Iranian exports.

Egyptian producers are lying low as the market tries to figure out what will happen with prices and transportation.

China:

Some product is being allowed out in limited quantities. Demands for urea exports are reviewed by customs officials to make sure the domestic reserves will not be affected.Sources reported that as more containers are returned to China, small quantity buyers might find it easier getting product.

Reportedly, urea plants are only operating at 60 percent of their rated capacity. Some have cut back even further, said sources, because of COVID-related restrictions.

International traders expect to see the availability of urea improve as COVID eases and as domestic demand steadies. Even with increased output, sources said they do not expect exports to return to the previous high levels for some time.

January-March urea exports were reported at 303,000 mt by Trade Data Monitor. This represents a 62 percent drop from the 802,000 mt sent out during the first quarter of 2021.

March 2022 exports totaled 66,000 mt, down from the 367,000 mt exported in March 2021. The main buyers in March, accounting for more than three-quarters of the tonnage exported, were South Korea, India, and Taiwan.

South Korea:

January-March imports of urea were reported at 327,000 mt by Trade Data Monitor, up 24 percent from the 263,000 mt imported during the first quarter of last year.

March imports were reported at 85,000 mt, up from 77,000 mt in March 2021, with product from China, Qatar, and Indonesia accounting for 85 percent of the March 2022 tonnage.

Nepal:

A tender for 30,000 mt of granular urea will close on April 22. The product will most likely come from China and be bagged in India. It will then be sent by river transportation to a receiving warehouse for distribution.Another tender is expected in the last week of May.

Brazil:

Imported prices reflect the softening of the global urea market. Sources put the landed price at $800-$900/mt CFR. Buyers in the country are said to be holding off for further declines in prices, but will step up when the product is finally needed.

Prices at Rondonopolis are stable, with only a slight variation at $1,050-$1,150/mt FOB ex-warehouse. Buyers are said to be waiting for more stability in the urea market before stepping up. This lack of interest is placing a downward pressure on prices.

UAN

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

U.S. Gulf:

NOLA UAN barges continued to be quoted at $620-$630/st ($19.38-$19.69/unit) FOB.

U.S. Imports:

February UAN imports were off 58.6 percent, to 73,071 st from 176,413 st in February 2021. Imports softened 9.9 percent for July-February, to 1.36 million st from the prior year’s 1.52 million st.

Imports from Trinidad and Tobago totaled 542,614 st for the July-February period, followed by Russia at 497,110 st, and Canada at 280,036 st.

Eastern Cornbelt:

The UAN-32 market was unchanged at $660-$670/st ($20.63-$20.94/unit) FOB in the Eastern Cornbelt, with the low at Mount Vernon, Ind., and the high at Peru, Ill., and Terre Haute, Ind. Sources continued to report Cincinnati pricing at $665/st ($20.78/unit) FOB for UAN-32 and $590-$595/st ($21.07-$21.25/unit) FOB for UAN-28.

Western Cornbelt:

The UAN-32 market was unchanged at $650-$675/st ($20.31-$21.07/unit) FOB terminals in the Western Cornbelt, with the low confirmed at St. Louis. Pricing out of most Iowa terminals fell in the $665-$675/st ($20.78-$21.07/unit) FOB range, depending on location.

Northern Plains:

UAN-32 pricing was quoted at $685-$695/st ($21.41-$21.72/unit) FOB Minnesota terminals, up $5-$10/st from March levels, with the low at Winona and the high at Pine Bend. The UAN-28 market in North Dakota remained at the $595-600/st ($21.25-$21.43/unit) FOB level in mid-April.

Northeast:

The UAN market FOB Baltimore was pegged at $690/st ($21.56/unit) for UAN-32 and $656-$660/st ($21.87-$22.00/unit) for UAN-30. The last UAN-32 offers at Fairless Hills were reported at the $700/st ($21.88/unit) FOB level for April-June tons.

UAN-32 pricing out of terminals in upstate New York remained at the $750/st ($23.44/unit) FOB level in mid-April.

Eastern Canada:

UAN pricing in Eastern Canada was moving up. The market was quoted as high as C$1,095/mt (C$34.22/unit) FOB for UAN-32, up a full C$95/mt from last report, with UAN-28 reported in a broad C$925-$960/mt (C$33.04-$34.29/unit) FOB range in the region, depending on location.

Ammonium Sulfate

Ammonium Sulfate, Brazil, China, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, South Korea, U.S. Gulf, U.S. Imports, Western Cornbelt

U.S. Gulf:

NOLA ammonium sulfate barges were stable at $675-$695/st FOB.

U.S. Imports:

Ammonium sulfate imports firmed 3.0 percent in February, to 104,780 st from 101,696 st in February 2021. July-February imports were off 9.2 percent, however, to 556,737 st from the prior year’s 612,926 st.

Canada topped the import list for July-February with 310,582 st, followed by Belgium at 152,976 st and South Korea at 50,265 st. Lower imports from Russia and the Netherlands were primarily responsible for the market’s reduced totals in the July-February period.

Eastern Cornbelt:

The granular ammonium sulfate market firmed to $740-$760/st FOB in the Eastern Cornbelt, depending on location, with Cincinnati pricing quoted at $750-$760/st FOB. Postings from AdvanSix in Illinois remained at $740-$745/st FOB and $750/st DEL for granular, with mid-grade referenced at $680/st FOB and $690/st DEL.

Western Cornbelt:

The ammonium sulfate market was pegged at $720-$740/st FOB in the Western Cornbelt, with the low reported at St. Louis and the high in Iowa. AdvanSix’s rail-DEL ammonium sulfate postings in Iowa included granular at $750/st and mid-grade at $690/st.

Northern Plains:

Delivered granular ammonium sulfate was pegged at $760-$800/st in North Dakota, with the high confirmed in western areas of the state.

AdvanSix’s April 1 granular ammonium sulfate postings included $740-$750/st FOB Minnesota terminals, $765/st FOB Sioux City, Iowa, and $750/st rail-DEL in Minnesota, up $50/st from the company’s March 14 reference prices. Mid-grade reference pricing was reported at $680/st FOB and $690/st DEL in Minnesota.

Northeast:

The granular ammonium sulfate market in the Northeast reportedly firmed to a broad $720-$775/st FOB or DEL range, depending on location, up from $700-$720/st at last report.

Eastern Canada:

New offers for ammonium sulfate in Eastern Canada were confirmed at the C$1,039-$1,075/mt FOB level in mid-April, up considerably from the last reported range of C$990-$1,015/mt FOB.

China:

Apparent weakness in demand for ammonium sulfate in the Southeast Asian markets is leading to softer prices out of China. Some sources said the price is now at $340-$350/mt FOB for standard caprolactam grade amsul. Others, however, said the price has gone as low as $320/mt FOB.

January-March exports were reported at 2.4 million mt by Trade Data Monitor, up from 2.2 million mt during the same period last year. Turkey, Brazil, and Vietnam, the three main buyers, accounted for just under half of all exports.

March 2022 exports were 759,000 mt, down from 872,000 mt in March 2021. Turkey purchased 99,000 mt in March, accounting for 13 percent of all exports. Vietnam was a close second at 94,000 mt, representing 12 percent of all ammonium sulfate exports.

South Korea:

January-March exports were reported at 81,000 mt by Trade Data Monitor, down 56 percent from the 182,000 mt exported during the first quarter of 2021.March 2022 exports were reported at 15,000 mt, down from 78,000 mt in March 2021.

Brazil:

The ammonium sulfate price range in Brazil tightened to $470-$480/mt CFR. Sources reported that even with 2022 first-quarter imports up 21 percent over last year, an additional 148,000 mt of amsul from China is expected from April through June.

Demand for amsul by regional distributors has created a wider price range. Sources now quote the Rondonopolis market at $575-$640/mt FOB ex-warehouse. Sources said the differences in pricing could be the result of differing delivery times, with the prompt deliveries earning higher prices.

DAP/MAP

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

Central Florida:

Central Florida DAP trucks continued to be posted at $945/st FOB, unchanged from one week earlier. MAP trucks were also unchanged at $945/st FOB, while MAP trucks loading from North Florida continued to be quoted at $1,025/st FOB.

U.S. Gulf:

Price ranges for NOLA barges narrowed in a mostly sideways trading environment during the week, as wet weather in a number of key markets tamped down nearby demand heading into spring.

DAP barges loading from NOLA were reportedly offered down to $950/st FOB, above the week-ago $940/st floor, while players typically described values up to the prior $970/st FOB high. Low-end netbacks on material trading upriver were heard in the $940-$944/st FOB NOLA-equivalent range, which sources said could suggest lower values in the next round of business.

NOLA MAP barges backed away from the week-ago $990/st FOB top to a current $980/st FOB ceiling, while sentiment for the market’s floor was typically voiced in the $960-$970/st FOB range, above the prior week’s $950/st FOB low.

Sources generally blamed the sluggish market on the slow start to spring application. “The lack of field activity is dragging down values again,” said one trader. “I would expect values to rebound if people can get some supply out of their sheds.”

DAP barges were noted in the $950-$970/st FOB range for the week, up from $940-$970/st FOB at last report. NOLA MAP tightened to a reported $960-$980/st FOB range, compared with the prior week’s $950-$990/st FOB.

U.S. Imports:

July-February DAP imports were up 19.8 percent, to 903,659 st from the prior year’s 754,304 st. February imports were off 36.3 percent, however, to 67,112 st from 105,389 st in February 2021. Saudi Arabia led the July-February import list with 317,160 st, followed by Australia at 251,973 st and Egypt at 121,293 st.

Imports of MAP/Other phosphates were off 16.9 percent for February, to 58,558 st from 70,434 st in February 2021. July-February totals stood at 635,337 st, however, rising 12.2 percent from the prior year’s 566,402 st. Despite registering no new U.S.-bound vessels in February, Saudi Arabia led the July-February list with 155,059 st, followed by Russia at 106,472 st and Jordan at 94,460 st.

U.S. Exports:

Nothing new was heard on the Gulf spot export market, leaving last-done DAP and MAP cargoes unchanged at $1,240/mt FOB.

Eastern Cornbelt:

DAP pricing reportedly slipped to $990-$1,025/st FOB in the Eastern Cornbelt, down $5-$10/st from the prior week. The Cincinnati market was quoted in the $1,005-$1,025/st FOB range for DAP and $995-$1,035/st FOB for MAP.

Western Cornbelt:

The DAP market was steady at $990-$1,025/st FOB in the Western Cornbelt, with the St. Louis market quoted in the $990-$1,010/st FOB range. MAP pricing reportedly slipped to $1,000-$1,035/st FOB in the region, with the St. Louis market pegged at $1,000-$1,025/st FOB.

Sources quoted the Catoosa/Inola market at $1,000-$1,015/st FOB for DAP and $1,000-$1,020/st FOB for MAP.

Northern Plains:

DAP pricing reportedly slipped to $990-$1,010/st FOB St. Paul, down $10-$20/st, with MAP reported at $1,000-$1,020/st FOB at that location. Delivered green MAP in western North Dakota was steady at the $1,050/st level in mid-April.

Northeast:

MAP remained at $1,020/st FOB East Liverpool, Ohio, with no tons available at Fairless Hills. DAP prices reportedly slipped to $1,015/st FOB East Liverpool, down $15/st from the last confirmed levels.

Eastern Canada:

Phosphate prices jumped again in Eastern Canada, with MAP rising to C$1,475-$1,550/mt FOB in the region, up significantly from the last reported C$1,350-$1,480/mt FOB range. DAP pricing surged C$150/mt at Montreal, rising to C$1,550/mt FOB for new sales.

Saudi Arabia:

Recent pricing out of Saudi Arabia was noted in the $1,025-$1,215/mt FOB range, firming from $1,025-$1,200/mt FOB at last report.

China:

A recent DAP tender in Nepal showed a calculated price back to China of $1,050-$1,100/mt FOB. Sources said the tender for 20,000 mt will most likely be covered with Chinese product. The DAP will be shipped to an Indian port for bagging before being sent by river transportation to a Nepal distribution warehouse.

Sources said the relatively small amount is not difficult to get past the local customs officers, who must be satisfied that any exports will not hurt domestic supplies. The small lots seem to be the only new deals that are allowed out of China. Larger quantities seem to be tied to ongoing contracts that were signed before the October 2021 export restrictions were put in place.

January-March exports were reported at 743,000 mt, down 19 percent from the 918,000 mt exported during the first quarter of 2021. The drop reflects the restrictions placed on exports by the Chinese government through May 2022.

Trade Data Monitor also reported March DAP exports of 379,000 mt, down 27 percent from March 2021 exports of 519,000 mt. Bangladesh snagged one-third of the March exports with 124,000 mt. India took another 22 percent of exports with 81,000 mt.

Exports of MAP for the first quarter were also down at 202,000 mt, reflecting a 65 percent drop from the 587,000 mt exported for January-March 2021.

March MAP exports were reported at 102,000 mt, about half of the 200,000 mt exported during March 2021. Australia took almost two-thirds of the March exports with 62,000 mt. Argentina was the other major buyer, taking 20,000 mt, or 20 percent of the MAP exports for the month.

India:

Buyers are holding off on making any decisions about importing more DAP until the government deals with the maximum retail price (MRP) and subsidy allotments. Sources said the current MRP is not high enough to justify importing DAP at this time. As a result, they said the subsidies will not be enough to cover any potential losses.

Nepal:

A tender closed earlier this week for 20,000 mt of DAP at $1,307/mt CIP. Sources speculated the tonnage will come from China to an Indian port for bagging before being sent by river transportation to a Nepal distribution warehouse.

Another tender for 20,000 mt of DAP will close on April 22. This is also expected to be covered by Chinese material.

Brazil:

The price range widened as uncertainty grows about the availability of MAP. Sources now report the price at $1,250-$1,350/mt CFR.

Lack of material for regional distributors is a growing concern, said sources. The sanctions against Russia, combined with the limited export tonnage from China, is causing concern that the tonnage might not be available later in the year when it is needed. Buyers are hesitant to make a commitment for product in the next quarter when there is no guarantee the material will be there.

The price in Rondonopolis was reported marginally softer at $1,400-$1,515/mt FOB ex-warehouse, as buyers hold off on making a commitment until they actually need the product.

Sources said the limited buying that is taking place appears to be mostly by NPK manufacturers rather than farmers looking for product for direct application.