All posts by mickeybarb@charter.net

Meristem Crop Performance Group LLC – Management Brief

Management Briefs, Specialty, Western Cornbelt

Crop inputs supplier Meristem Crop Performance Group LLC, Columbus, Ohio, announced that Jason Link and the team at SeedLink LLC, Rio, Wisc., are now offering the Meristem Crop Performance product line to growers in Wisconsin. Black’s Valley Ag, a family-owned, independent ag retailer in Durand, Wisc., has also partnered with Meristem to offer the company’s specialty crop input products to their grower customers in west-central Wisconsin.

The Meristem product line includes Hopper Throttle™ planter box treatments, Revline™ biologicals and plant growth regulators, Trutrack™ drift control, Aquadraft™ water conditions and surfactants, Upshift starter fertilizers, Homestretch™ micronutrients and foliar nutritionals, and Excavator™, a new biological powered by Microbilize™.

Meristem also reported that it has added Cody Stevens of Pendleton, Ind., and Jediah French of Leopold, Ind., as Account Managers for growers in Indiana, Kentucky, and Michigan. Stevens spent 23 years as a telecommunications sales and service technician, while French spent nearly six years as a Territory Manager for Corteva Agriscience, and six years before that with Winfield Seed as a District Sales Manager.

Ammonia

Ammonia, Black Sea, California, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, North Africa, Northwestern Europe, Pacific N.W., Tampa, Thailand, U.S. Gulf, Western Canada, Western Cornbelt

US Gulf/Tampa:

Tampa ammonia continued to be called $380/mt CFR for May, down from April’s $435/mt CFR. NOLA barges were assessed at $345/st FOB, the Tampa equivalent.

Eastern Cornbelt:

With preplant demand starting to wind down in the region, ammonia slipped to $550/st FOB in the Eastern Cornbelt, below the previous $575-$600/st FOB range.

Western Cornbelt:

Ammonia was unchanged at $500-$525/st FOB terminals in Nebraska and Iowa, depending on location.

California:

Anhydrous ammonia continued to be referenced at $890/st DEL in California, with aqua ammonia postings steady at $237/st FOB Stockton and $247/st FOB Sycamore.

Pacific Northwest:

Ammonia pricing out of Washington terminals remained at the $730/st FOB level for recent offers, with delivered tons pegged in the $710-$740/st range in the Pacific Northwest.

Aqua ammonia was steady at $190/st FOB in the Pacific Northwest.

Western Canada:

The latest spring ammonia offers in Western Canada were reported as low as C$700/mt FOB and C$1,040-$1,070/mt DEL, well below the previous C$850-$1,150/mt FOB and C$1,100-$1,300/mt DEL ranges.

Black Sea:     

The pipeline from Russia to Odessa remains closed due to the war in Ukraine, blocking exports from the region.

Turkish buyers continue to look for ammonia. Sources said that no new deals were concluded this week, leaving a cargo of Venezuelan product as Turkey’s last-done purchase. The price – initially thought to land in the $330s/mt CFR – now appears to have concluded in the upper-$320s/mt CFR.

First-quarter ammonia imports to Turkey totaled 167,000 mt, Trade Data Monitor reported, down about 16% from the year-ago 198,000 mt. March imports were pegged at 35,000 mt, off from 67,000 mt imported in March 2022. Egypt supplied 29,000 mt.

India:     

Sources said several deals were most likely concluded, but the lack of transparency in the transactions made nailing down prices difficult. The estimated price into India is now put at $300-$310/mt CFR.

Middle East: 

Business was limited as Arab Gulf countries return from the late-April Eid al-Fitr holiday. Sources said the only material moving appeared to be contract tons, leaving the estimated spot price at $245-$250/mt FOB.

North Africa:

Sources reported deals out of Algeria pegged at $368/mt FOB, with the material sold into Europe. The deals pushed the Northwest Europe price into the $400s/mt CFR.

Northwest Europe:      

Limited deals were made at levels that moved up the public price for the area. Sources said sales by Yara and Fertiglobe pushed the price to $400-$425/mt CFR. The transactions appeared designed to move the import price closer to the break-even cost of European producers, although an aggressive buyer might still be able to secure a cargo in the $350s/mt CFR, one trader noted.

The lack of any other public business in the area has caused industry watchers to call the price in the $400s/mt CFR.

Indonesia:     

Pupuk has reportedly said it no longer has any extra tons for sale, claiming the only material it has on hand is booked under existing contracts. Some traders questioned the definitive nature of the statement, however, speculating that spot tons might still be secured for the right price. However, the price could be beyond what buyers are willing to pay at this time.

Thailand:

Trade Data Monitor put January-March ammonia imports at 96,000 mt, rising from 44,000 mt reported in first-quarter 2022. March imports stood at 31,000 mt, up 78% from 18,000 mt noted one year earlier. Malaysia sent 15,000 mt, followed by China with 14,500 mt.

Urea

Africa, Black Sea, Brazil, California, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Pacific N.W., Thailand, U.S. Gulf, Urea, Western Canada, Western Cornbelt

US Gulf:

Prompt urea barges continued to garner a significant premium at $440-$450/st FOB versus those for full-month May. The market for full-May was reported at $355/st FOB early in the week, but fell to $320-$325/st FOB by late Thursday.

Eastern Cornbelt:

Tight supply continued to push urea prices higher in the region in early May, despite some downward pressure on the NOLA barge market. Urea moved to $495-$520/st FOB in the Eastern Cornbelt, up from last week’s $480-$500/st FOB range, with the Cincinnati, Ohio, market quoted at $495-$505/st FOB during the week.

Western Cornbelt:

Urea prices strengthened again, firming to $480-$520/st FOB in the Western Cornbelt, up another $20/st from last week, with the low confirmed at St. Louis, Mo. The Catoosa/Inola, Okla., urea market was reported at $495-$515/st FOB for the week, with St. Paul, Minn., pricing confirmed in a broad range at $500-$530/st FOB.

California:

Urea slipped to $560-$600/st FOB Stockton, down from the prior low of $585/st FOB, with reports of bagged urea listed at $660/st FOB Stockton. The last rail-DEL pricing in Northern California fell in the $540-$585/st range. “Urea is a slow mover this time of year, so there’s not much demand for that,” said one contact.

Added another California source: “The California market has had a premium to NOLA pricing, so since they didn’t take the dip down, they aren’t seeing the pop up.”

Pacific Northwest:

Urea was firming in the Pacific Northwest, fueled by the April spike in NOLA prices. The market was quoted at $520/st FOB Rivergate, Ore., and $525/st FOB Aurora, Ore., up from the previous $460-$465/st FOB range, with some sources expecting another increase soon. Delivered urea was quoted firmly in the $525-$535/st range in Montana.

Western Canada:

Urea pricing in Western Canada firmed to C$665-$730/mt FOB and C$720-$765/mt DEL, up from the previous C$630-$650/mt FOB and C$670-$700/mt DEL ranges.

India:     

Sources said that some traders are still looking for urea to cover awards from the March Indian Potash Ltd. (IPL) tender. There are reportedly at least five vessels that still need to be nominated to fulfil the awards.

With urea prices rising, some have said that those still looking for product will find the $330-$335/mt CFR tender price to be too low for the current market. China, the Arab Gulf, and Indonesia are now all in the $330s/mt FOB and higher.

With about 225,000 mt still to be booked and loaded by the end of the month, sources said that no new tender call is expected until the last week of May, at the earliest. Even with more domestic production coming online, traders said India will have to call another tender to ensure a plentiful supply of urea.

Black Sea:

The price for prilled urea from the area remained steady at $300-$305/mt FOB.

Turkish imports of urea picked up in January-March. Imports were counted at 885,000 mt, according to Trade Data Monitor, above the prior-year 529,000 mt. March imports were 329,000 mt, a 74% year-over-year increase from 190,000 mt. Egypt supplied 140,000 mt for the month, while Oman sent 105,000 mt.

Turkey has stepped up its urea exports as well. The increase came after the February 2022 start of the Ukraine war, which hampered the flow of fertilizer and grain from both Russia and Ukraine. Exports from Turkey were reported at 186,000 mt in 2022, up from 38,000 mt in 2021 and 63,000 mt in 2020.

January-March 2023 exports totaled 105,000 mt of, compared to 22,000 mt in the first quarter of 2022.

Turkey was instrumental in negotiating an agreement that would allow for fertilizer and grain products to be shipped through the war zone in the Black Sea. Part of the deal allowed for Russian product to enter Turkey before being shipped onward. This transfer of urea within Turkish ports is seen as one reason for the increase in Turkey’s urea exports.

Indonesia:     

Sources said the blip in prices that occurred late in April, when Petronas bought a cargo from Pupuk, is now gone. The sale temporarily boosted the regional price into the upper-$340s/mt FOB, although one trader said the move looked more like two producers agreeing to a higher price to jumpstart a price rally in Southeast Asia.

Following the producer-to-producer deal, sources said pricing discussions reverted to the low-$330s/mt FOB. A selling tender closed May 5 for 30,000 mt of granular urea. Reports are the high bids were in the $330s/mt FOB. Some other bids came in the upper $320s/mt FOB. An award is expected soon. Shipment of product is set for second-half May.

Thailand:

Urea imports firmed 57% in January-March, Trade Data Monitor reported, lifting to 392,000 mtfrom the year-ago 249,000 mt. March imports stood at 197,000 mt, a 43% increase from 137,500 mt bought in March 2022. Saudi Arabia led suppliers with 99,000 mt, followed by Malaysia with 59,000 mt.

Saudi Arabia’s large share of the March market was of no surprise. SABIC has long provided material to Thai buyers at favorable rates to ensure the Saudi company maintains a healthy share of the local market.

Middle East: 

The area has slowly returned from the Eid celebrations, with no new spot deals reported. Sources said that limited interest in buying or selling during the week has left prices steady at $330-$332/mt FOB.

Egyptian producers took advantage of European buyers looking for top-off tons for the spring season. Kima settled a 3,000 mt sale at $366/mt FOB at the close of last week, while MOPCO slipped in with another 3,000 mt at $367/mt FOB as the current week opened. Both cargoes were slated for shipment in the first half of May.

Sources said that while business was limited due to Eid, the market was also slowed by the country’s Labor Day holiday, celebrated on May 1

China:   

Sources described pricing indications as all over the map. Fudao reportedly sold a cargo of granular urea at $335-$338/mt FOB. At the same time, a number of prilled deals were reportedly under discussion at a $10/mt discount to granular. Even as confirmation of the Fudao business arrived, other producers claimed their prices to be firm in the low-$350s/mt FOB. However, no deals could be confirmed at that level

The Fudao price put Chinese urea back in line with the Arab Gulf price in the $330s/mt FOB. Prior to the imposition of export controls by China, the Arab Gulf and Chinese markets were usually priced within a few dollars of each other. The move to limit exports from China boosted the global price for Chinese product, however, while lowering it for the domestic market.

Rumors that Beijing is planning to amend its export policy continued to abound. While most of the talk has been about phosphates, sources said that urea could be impacted as well. The change was supposed to have taken effect May 1. However, with China essentially closed for Labor Day celebrations on May 1-3, sources reported seeing no announcements regarding the proposed changes during the week.

Brazil:   

Prices softened to $340-$345/mt CFR. Sources said the shift represented a minor adjustment, rather than an indicator of a major change in the market.

Urea from sanctioned countries such as Venezuela and Iran has been putting downward pressure on prices. Sources said that offers for this product have been quoted as low as the upper-$320s/mt CFR, but with no deals finalized at that level.

The Rondonopolis price was reported up at $460-$500/mt FOB ex-warehouse. Seasonal demand is fueling a subtle-but-steady upward push on prices. Offers were reported at $550-$570/mt FOB, but without any agreements.

Ethiopia:

Urea imports firmed to 150,000 mt for January-April, according to Trade Data Monitor,a jump from the prior-year 56,000 mt. April imports registered at 24 mt – all from Qatar – down from 55,000 mt imported in April 2022.

Ethiopia usually makes larger purchases in May and June of each year, with occasional buying spurts in January.

UAN

California, Eastern Cornbelt, Management Briefs, Pacific N.W., U.S. Gulf, UAN, Western Canada, Western Cornbelt

US Gulf:

UAN barge prices continued at $270-$280/st ($8.44-$8.75/unit) FOB.

Eastern Cornbelt:

UAN-28 offers at Cincinnati were quoted at $258-$280/st ($9.21-$10.00/unit) FOB, down from last week’s $267-$280/st ($9.54-$10.00/unit) FOB range. UAN-32 remained at $305-$330/st ($9.53-$10.31/unit) FOB in the Eastern Cornbelt, depending on location.

Western Cornbelt:

UAN-32 was steady at $310-$335/st ($9.69-$10.47/unit) FOB in the Western Cornbelt, with the St. Louis market reported at $310-$320/st ($9.69-$10.00/unit) FOB in early May.

California:

The UAN-32 market in California slipped to $380-$400/st ($11.88-$12.81/unit) FOB Stockton, down from the prior low of $390/st FOB. Postings remained at $405/st ($12.66/unit) FOB Port Hueneme and $410/st ($12.81/unit) FOB West Sacramento. Rail-DEL UAN-32 offers in Northern California were steady at $360-$380/st ($11.25-$11.88/unit).

Pacific Northwest:

UAN-32 remained at $385/st ($12.03/unit) FOB Kennewick, Wash., with rail-DEL tons quoted at $378-$392/st ($11.81-$12.25/unit) in the Pacific Northwest.

Western Canada:

The UAN-28 market inched up to a firm C$445/mt (C$15.89/unit) DEL in Western Canada for May-June offers.

Ammonium Nitrate

Ammonium Nitrate, France, Market Watch, Western Cornbelt

Western Cornbelt:

Ammonium nitrate remained at $470/st FOB Lamar, Mo., and $490/st FOB St. Joseph, Mo.

France:

Yara posted a new list price on May 5 of €371/mt bulk CPT with immediate effect for July deliveries of ammonium nitrate 33.5% (YaraBelaExtran) in France, a €21/mt increase on the posting for June deliveries, announced two weeks ago (GM April 21, p. 7). Once again, it warned only limited volume will be available at these prices.

Ammonium Sulfate

Ammonium Sulfate, Brazil, California, China, Eastern Cornbelt, Market Watch, Pacific N.W., Thailand, Turkey, U.S. Gulf, Western Canada, Western Cornbelt

US Gulf:

NOLA AS barges strengthened a bit to $325-$330/st FOB, up from the week-ago $320-$330/st FOB.

Eastern Cornbelt:

Tightening supply reportedly pushed ammonium sulfate prices up slightly in the Eastern Cornbelt, to $375-$400/st FOB from the prior week’s $370-$390/st FOB range.

Western Cornbelt:

Granular ammonium sulfate inched up to $375-$400/st FOB in the Western Cornbelt as supplies become stretched, with the low at St. Louis and the high reported in Iowa.

California:

Ammonium sulfate was unchanged at $430-$465/st FOB in California, with the low for standard. Pricing for granular and/or premium grade ammonium sulfate fell in the $440-$465/st FOB range in the state, depending on supplier and location.

Pacific Northwest:

The ammonium sulfate market remained at $370/st FOB/DEL for standard grade, with granular quoted at $400-$445/st FOB/DEL, depending on supplier and location.

Western Canada:

Pricing for ammonium sulfate in Western Canada slipped to C$510-$530/mt DEL in early May, down slightly from the prior C$520/mt DEL low.

China:    

Business was limited for the week due to the May 1 Labor Day holiday. Plants and offices are not expected to be back to full operation until next week. Even with the limited opportunities to talk shop, sources said there were reports of higher prices being concluded out of China for caprolactam-grade amsul, but without confirmation. The new price range under discussion was put at $135-$140/mt FOB.

Sources pegged prices from the factory door at $113-$127/mt ex-plant, depending on location. This translates to an export price of $127-$137/mt FOB, which covers both pricing from last week and higher prices reported for the current week.

Brazil:   

The Labor Day holiday in China limited the ability of buyers to secure additional tons of amsul. The lack of any new deals widened the range of price discussions to $180-$190/mt CFR.

Traders reported keeping a close eye on the urea market. Expectations of softer urea prices could lead to reduced demand for amsul in the blending process.

Rondonopolis reported a wide range at $295-$330/mt FOB ex-warehouse. The stronger inland urea market has buyers looking to amsul as a substitute in their blending systems. Just as the importers are watching the trends in the urea market, so too are the local distributors. For now, strong demand for urea is allowing amsul sellers to slip in and offer their product as a viable, cheaper substitute.

Turkey: 

Trade Data Monitor reported ammonium sulfate imports at 304,000 mt for January-March, off40% from the year-ago 509,000 mt. March imports of 61,000 mt were down from 209,000 mt imported one year earlier. Chinese amsul accounted for 55% of the imported March product at 34,000 mt, while Belgium supplied the balance with 27,000 mt.

Thailand:      

January-March ammonium sulfate imports were pegged at 44,000 mt, Trade Data Monitor reported, unchanged from the same period of 2022. March imports were noted at 30,000 mt, falling 18% from 37,000 mt purchased in March 2022. China supplied all of the March tonnage.

DAP/MAP

Brazil, California, Central Florida, China, DAP/MAP, Eastern Cornbelt, India, Market Watch, Pacific N.W., U.S. Exports, U.S. Gulf, Western Canada, Western Cornbelt

Central Florida:

No price changes were reported on truck-loaded DAP and MAP in the Central Florida market. DAP trucks were posted at $640/st FOB, while MAP was offered $10/st lower at $630/st FOB.

North Florida MAP trucks were posted at $650/st FOB, sources said, steady from the prior report.

US Gulf:

NOLA phosphate barge prices were reported softening from week-ago levels.

Players noted offers for full-May DAP barges dropping to $530/st FOB, echoing price declines seen in the MAP market one week before, while traded values tracked at a flat $520/st FOB, a sharp decline from the week-ago $646/st FOB floor. Prompt offers reported at $600/st FOB did not attract public bids, sources said.

MAP pricing was heard slipping to $485/st FOB, down from $499/st FOB in the prior report, while players put the top of the traded range at $500/st FOB. New offer levels for May barges were generally reported in a $510-$530/st FOB range at midweek.

Sources attributed the falling values to a number of factors, including fears of inventory spillover into June, possible indexing efforts related to an expected strong May-June import lineup, and ongoing flood-related freight holdups on the Upper Mississippi River.

Based on reported trades, NOLA DAP barges were priced at $520/st FOB for the week, below $646-$650/st FOB in the prior report. MAP barge pricing softened to $485-$500/st FOB, off from $499-$630/st FOB at last report.

US Exports:

Sources reported softer export pricing out of the US Gulf, noting a 21,000 mt DAP cargo sold into the northern Latin American markets during the week. Priced at $550/mt FOB, the tons were slated for late-May or early-June loading.

Based on reported spot transactions, the Gulf export phosphate price fell to $550/mt FOB, a $60/mt decrease from $610/mt FOB noted previously.

Eastern Cornbelt:

DAP was quoted at $720-$780/st FOB in the Eastern Cornbelt, down from last week’s $750-$795/st FOB range, with MAP reported at $715-$745/st FOB. Sources said the Cincinnati market was sold out of both DAP and MAP at midweek, with the last confirmed business at $750-$780/st FOB for DAP and $715-$720/st FOB for MAP.

Western Cornbelt:

DAP pricing was reported at $720-$770/st FOB in the Western Cornbelt, down slightly from last week’s $740-$795/st FOB, with the St. Louis market pegged in the $720-$750/st FOB range. MAP remained at $710-$735/st FOB in the region, with the St. Louis market reported at the $725/st FOB level.

California:

The California MAP market was pegged at $780-$800/st FOB/DEL in early May, up from a flat $780/st at last report.

Pacific Northwest:

MAP pricing in the Pacific Northwest was quoted at a firm $780/st FOB/DEL, up from the prior $760-$770/st range.

Western Canada:

MAP firmed to C$1,070-$1,110/mt FOB for May tons in Western Canada, up from C$1,060-$1,080/mt FOB in April. Delivered MAP moved to a reported high of C$1,150/mt, up from C$1,080-C$1,115/mt DEL.

“Prices continue to push higher, and quickly, as the market seems to be vastly under positioned, just as the US was a few weeks ago,” said one contact.

China:    

With most offices closed this week for the Labor Day holiday, sources said there was no new DAP business conducted. The most recent estimated price of $585/mt FOB is projected to come off as the domestic DAP market wanes.

The government is also expected to make export policy changes that will allow for more DAP and MAP to be exported. The policy shift was rumored to have been put in place on May 1. So far, however, international traders have not yet seen or heard anything to confirm the change. Sources said the announcement will most likely be made next week, once everyone is back at work.

India:     

Sources reported two 30,000 mt cargoes of Russian DAP sold to India at $542-$548/mt CFR, while an additional deal was reported at $540/mt CFR. These prices would suggest a netback in the low-$500s/mt FOB Russian port.

The current National Fertilizers Ltd. (NFL) DAP tender is reportedly seeing offers in the mid-$530s/mt CFR, although no awards have been made. Sources said they were not surprised by the falling prices for DAP. One trader said that further price drops were expected.

Brazil:   

Prices shifted down to $555-$575/mt CFR for MAP. Sources said a that general feeling of oversupply – with more product on the way ­– justified the lower price expectations.

Rondonopolis was reported down to $670-$720/mt FOB ex-warehouse. The bearish attitude was strong enough to push back against sellers who used the bump-up in NOLA prices to try and move the Brazilian market in a similar manner. Buyers were having none of it, and kept bidding lower.

TSP

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

US Gulf:

Nothing new was heard on the NOLA TSP barge market, leaving last-done in a $550-$560/st FOB range. Recent declines in the broader phosphate markets for full-May loading prompted expectations of lower TSP values in the next round of business. “TSP will need to be below $500 to have any chance,” said one source.

Eastern Cornbelt:

TSP remained at $640-$660/st FOB in the Eastern Cornbelt.

Western Cornbelt:

TSP pricing was unchanged at $640-$645/st FOB in the Western Cornbelt in early May.

Brazil:   

The imported price of TSP was pegged at $380-$400/mt CFR, following the broader phosphate market lower.

The Rondonopolis price was reported at $545-$550/mt FOB ex-warehouse. The slight uptick from the previous week was seen more as a minor correction rather than a significant price trend.

SSP

Brazil, Market Watch, SSP

Brazil:   

Import prices settled down a bit to $190-$200/mt CFR.

The Rondonopolis price for SSP 19-21 came in at $314-$380/mt FOB ex-warehouse, representing a minor price fluctuation from the previous week. Sources described SSP-21 as the region’s most available product.