All posts by mickeybarb@charter.net

Phosphoric Acid

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

Eastern Cornbelt:

The phos acid market was unchanged at $13.00/unit rail-DEL in Illinois and $13.15/unit rail-DEL in Ohio for June tons.

Western Cornbelt:

Phos acid pricing for June was steady at $12.90/unit rail-DEL in Nebraska, Missouri, and Iowa.

Southern Plains:

The phos acid market for June tons remained at $12.90/unit rail-DEL in Colorado, Kansas, and New Mexico, and $13.00/unit rail-DEL in Texas and Louisiana.

India:

Second-quarter phosphoric acid contracts at India were reported at $998/mt CFR, up $203/mt from $795/mt CFR in the prior period.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Southern Plains, Western Cornbelt

Eastern Cornbelt:

10-34-0 remained at $580-$600/st FOB in the Eastern Cornbelt for the last reported offers, with the low at Cincinnati.

Western Cornbelt:

The 10-34-0 market was steady at $575-$595/st FOB for the last reported business in the region, depending on location.

Southern Plains:

The Southern Plains 10-34-0 market was steady at $530-$540/st FOB in late June. The last offers for 11-37-0 in Texas were reported in the $600-$620/st FOB range.

Muriate of Potash

Brazil, China, Eastern Cornbelt, India, Market Watch, Northwestern Europe, Potash Muriate, South Central, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf:

NOLA potash barge price ideas continued to soar. No near-term deals were reported, but September-October was called $495/st FOB, up from the week-ago $455/st FOB.

Eastern Cornbelt:

Potash prices in the Eastern Cornbelt firmed again, driven by tight supply and rapidly strengthening NOLA barge values. The market rose to $485-$535/st FOB during the week, up from the prior week’s $450-$485/st FOB, with the low reported at Cincinnati and East Dubuque, and the high at Ottawa.

Western Cornbelt:

Sources quoted potash pricing at $485-$520/st FOB in the Western Cornbelt, up another $35-$55/st from the previous week, with the low reported at St. Louis and the high at Camanche.

Southern Plains:

Potash prices were up significantly but covered a broad range in the Southern Plains as the week progressed, from a low of $475/st FOB Houston to a high of $535/st FOB Catoosa/Inola.

Intrepid on June 22 announced new potash postings at all mine locations, with Carlsbad, N.M., prices jumping to $540/st for 60 percent white granular and $547/st for 62 percent white standard. New postings FOB Moab and Wendover, Utah, include $540/st for 60 percent white standard and $535/st for 60 percent white granular.

Intrepid said the new postings represent a $90/st increase over previous prices and are in response to the rapid market appreciation in the barge and inland warehouse markets. The company indicates they are sold out for Q3, with only limited spot tons available to historical customers at the new pricing.

South Central:

Potash prices in the South Central region covered a wide range as the week progressed. While the low was confirmed early in the week at $455-$460/st FOB Memphis, sources quoted levels as high as $500-$505/st FOB in Arkansas and Louisiana by midweek, amid ongoing reports of very tight inventories.

Southeast:

Southeast sources described very tight potash inventories, with “scattered truck tons” available in the $455-$485/st FOB range out of port terminals, up from $440-$465/st FOB at last report. “The rumor is $500/st FOB or more when import tons get in here,” commented one regional source.

Northwest Europe:

Potash prices moved up across the region amid looming sanctions by the E.U. (see news story on p. 1). Sources report granular prices as high as $290/mt CIF.

India:

FACT closes a tender on June 29 for one shipment of 40,000 mt of red/pink standard potash for arrival at Tuticorin in August (GM June 18, p. 16).

Brazil:

Sources reported the Paranagua MOP price at $500-$520/mt CFR, showing a bit of gain at the upper end of the range. Sources also reported rumors of deals coming in at $550/mt CFR. While there was no confirmation of the $550/mt CFR business, sources were confident that evidence of deals at that level will soon be forthcoming.

Rondonopolis was reported down to $580-$590/mt FOB ex-warehouse. The decline was attributed to limited demand and limited supply. This breather in pricing, however, is expected to end soon, with prices poised to move up again.

China:

January-May MOP imports were up 21 percent, to 4.1 million mt from 3.4 million mt during the same period last year, according to Trade Data Monitor.

Canada, Russia, and Belarus were the top three suppliers of MOP this year. However, tonnage from Canada dropped to 1.2 million mt for the period, about 24 percent below last year’s 6 million mt. Belarus showed a more than 200 percent increase in shipments to China, to 1 million mt from 338,000 mt in January-May 2020.

May imports were up 15 percent, to 555,000 mt from 460,000 mt in May 2020. The main suppliers this year were Russia at 200,000 mt, and Canada and Belarus each at 130,000 mt. The Canadian numbers once again showed a dramatic drop from last year’s 201,000 mt, while Belarus was up some 17,000 mt from May 2020.

Sulfur

ADNOC - Abu Dhabi, Alberta, Brazil, Caribbean, China, Market Watch, Qatar, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa:

Softening values at Brazil led to shifting perspectives on a potential landing spot for third-quarter Tampa molten sulfur contracts. While most speculation continued to center on a possible $0-$10/lt increase from the market’s second-quarter $192/lt CFR deal, some outlooks suggested a possible softening from the top of that range.

U.S. refinery utilization trickled lower for the week, according to the Energy Information Administration. Utilization was noted at 92.2 percent for the week ending June 18, a 0.4-point decline from the 92.6 percent reported one week earlier, but ahead of both the year-ago 74.6 percent and the 90.3 percent five-year average.

Daily crude inputs slipped to an average 16.112 million barrels/d for the week, falling 225,000 barrels/d from 16.337 million barrels/d in the prior report.

U.S. Gulf:

Tropical Storm Claudette had little discernible impact to refinery operations in the U.S. Gulf after coming ashore in Louisiana on June 19, sources reported.

ExxonMobil Corp. has rejected a series of United Steelworkers union (USW) contract proposals, extending a seven-week lockout at the company’s refinery in Beaumont, Texas, Seeking Alpha reported. Operations have continued at the 369,000 barrel/d facility since May 1 through the use of replacement workers.

Softening international values were reportedly pressuring potential Gulf netbacks, with some suggesting a tilt toward the low side of $190-$200/mt FOB.

Brazil:

Last-done spot transactions were noted in the $220s/mt CFR for the week, with sources pinpointing one deal at $221/mt CFR, down from the previous $225-$236/mt CFR range. Second-quarter Brazil contracts were quoted at $213-$214/mt CFR.

Caribbean:

The beleaguered Limetree Bay Energy refinery on the U.S. Virgin Island of St. Croix will remain shut indefinitely after a number of environmental incidents prompted the 210,000 barrel/d facility to temporarily cease operations in May.

The plant, which reopened in February following a 10-year idle period, was ordered shut by EPA for a minimum 60 days after spraying a number of local neighborhoods with petroleum droplets and contaminating a local water supply, news outlets reported.

Limetree was unable to secure funding to pay for an EPA mandate to install a large number of monitoring units as a prerequisite for reopening. As a result, the company will lay off approximately 271 employees effective Sept. 19, according to Reuters. Majority stakeholder Arclight Capital reportedly shed its position in Limetree earlier in June.

Vancouver:

Sources described nothing new from Vancouver, calling most-recent spot levels unchanged at $178-$180/mt FOB.

Alberta:

Alberta netbacks continued to be heard at $65-$110/mt FOB, inclusive of both molten tons contracted into the U.S. market and prills trading offshore through the Vancouver export market.

West Coast:

Ideas on West Coast prills continued to be reported in the $178-$180/mt FOB range, unmoved from one week earlier. Molten sulfur contracts were reported at $140-$155/lt FOB for the second quarter, a rise from $70-$77/lt FOB in the first quarter.

China:

The Chinese government may be cracking down on the country’s exploding independent oil refining industry, Bloomberg reported. The government is investigating potential environmental and tax violations at the country’s so-called teapot refiners, a sector of privately-owned facilities that has succeeded in gaining significant market share since receiving a regulatory green light in 2015.

The move could signal an end to the teapots’ fast expansion, potentially shifting greater control of the industry back to state-operated companies like Sinopec, CNOOC, PetroChina, and CNPC. Sources did not expect many significant output changes to result from the shakeup, however.

Port sulfur industries at China were recently reported falling to their lowest levels since 2019. Last-done spot import vessels were quoted in the $217-$220/mt CFR range, unmoved from the prior report.

ADNOC:

Solid sulfur cargoes were offered by the Abu Dhabi National Oil Co. at $185/mt FOB Ruwais for June, sources said, a $2/mt increase from the previous month’s $183/mt FOB.

Qatar:

Qatar prills continued to be quoted at $183/mt FOB Ras Laffan for June loading, unmoved from the previous period

Sulfuric Acid

Brazil, Gulf Coast, Market Watch, Midwest, Sulfuric Acid, U.S. Gulf, West Coast

U.S. Gulf:

Gulf import sulfuric acid price ideas continued to be heard at a minimum $170-$175/mt CFR, unmoved from one week earlier. Sources said firming bids to the tune of $190-$200/mt CFR will likely be required to secure a vessel in the current “momentum” market.

Gulf Coast:

Gulf Coast sulfuric acid contracts were quoted in the $85-$110/st DEL range for 2021.

Midwest:

Tons delivered to the Midwest were reported even with the Gulf at $85-$110/st DEL.

West Coast:

The West Coast market was unchanged in the $100-$130/st DEL range, sources said.

Brazil:

Values at Brazil were heard climbing to $195-$200/mt CFR, up from $190-$195/mt CFR in the prior report.

Ammonium Thiosulfate

Amthio, Eastern Cornbelt, Market Watch, Southern Plains, Specialty, Western Cornbelt

Eastern Cornbelt:

Ammonium thiosulfate pricing continued to cover a wide range in the Eastern Cornbelt, based on supplier and availability. Sources reported limited volumes on the Ohio River at the $540/st FOB level, while offers out of Terre Haute were quoted at $430-$450/st FOB for the last business. The low end of the regional market was reported at $400/st FOB Ottawa for limited tons at midweek.

Western Cornbelt:

Sources reported limited ammonium thiosulfate tons at the $430-$450/st FOB level on a spot basis in Iowa in late June.

Southern Plains:

The ammonium thiosulfate market remained at $325/st FOB Houston. The last tons offered out of Lubbock, Texas, were reported in the $335-$350/st FOB range, but sources said the market was sold out at that location in late June.

SOP Magnesia

Market Watch, Southeast, Southern Plains, Specialty, Sulfate of Potash Magnesia

Southern Plains:

Intrepid announced a $35/st increase on all Trio grades on June 23. New postings FOB Carlsbad include $320/st for standard, $355/st for granular, $365/st for premium, $395/st for OMRI standard and fine standard, and $430/st for OMRI granular.

“Continued strong demand throughout June, combined with higher potash prices, continues to increase the underlying potassium value of our Trioproduct,” the company said.

Southeast:

SOP Magnesia pricing in Florida remained at $380/st FOB for standard and $415/st FOB for premium grade, with sources reporting improved supply.

Crops/Weather

Crops/Weather, Eastern Cornbelt, Market Watch, South Central, Southeast, Southern Plains, Western Cornbelt

Eastern Cornbelt:

A line of powerful thunderstorms on June 20 produced at least three tornadoes in the Chicago area and in northwestern Indiana, including one that registered as an EF-3 with sustained wind speeds of 140 mph that touched down in the Illinois communities of Naperville, Woodridge, and Darien.

The storm caused widespread damage. Another round of potentially strong thunderstorms was taking aim at southwestern and west-central Illinois late in the week, with forecasts warning of tornadoes, heavy rain, and flash flooding. Parts of northern Ohio were also bracing for a wet and stormy weekend after high temperatures and humidity late in the week.

Soybean emergence in the region had progressed to 94-95 percent by June 20, with USDA assigning good or excellent ratings to 65-65 percent of the corn and soybean acres in Illinois, 70 percent in Indiana, and 72-76 percent in Ohio.

Western Cornbelt:

The Western Cornbelt was bracing for severe thunderstorms as the week progressed. Forecasts on June 24 warned of heavy rain, large hail, and damaging winds in eastern Iowa, with rainfall totals of 3-6 inches expected in some locations.

A tornado warning was in effect on June 24 for eastern Nebraska and portions of Iowa and Missouri, with reports of severe thunderstorms battering Nebraska, and heavy rain, 60-mph wind gusts, and golf ball-sized hail in northwestern Missouri.

USDA placed fully 83 percent of Nebraska’s corn and soybeans in the good or excellent categories on June 20, along with 56-57 percent of the acreage in Iowa and Missouri. Missouri’s cotton and rice were rated as 68 percent good or excellent on that date.

Southern Plains:

High heat and humidity blanketed the Southern Plains during the last full week of June, with highs climbing to the triple digits in Kansas, Oklahoma, western Texas, and New Mexico.

Severe thunderstorms moved through parts of eastern Kansas late in the week, and a strong chance of precipitation was also in the weekend forecast for western Texas and New Mexico, along with cooler temperatures. New Mexico is in desperate need of rain, as much of the state continues to experience extreme-to-exceptional drought conditions.

Growers were wrapping up planting in the region in late June. The Kansas soybean crop was 90 percent planted by June 20, while cotton planting had progressed to 75 percent complete in Oklahoma and 96 percent in Kansas and Texas. Sorghum planting was 63 percent complete in Oklahoma by that date, compared with 85 percent in Kansas, 89 percent in Colorado, and 96 percent in Texas.

Sources continued to report fertilizer moving in the region, including sidedress applications on corn and cotton and movement on hayfields in Texas. Some early corn was also expected to be harvested in Texas in early July. USDA on June 20 rated 77 percent of the Texas corn crop as good or excellent, compared with 71 percent in Kansas and 78 percent in Colorado.

South Central:

Strong thunderstorms moved through Middle Tennessee and southern Kentucky early in the week, with high heat and humidity reported for the balance of the week. Hot, muggy conditions were also reported in Arkansas, with temperatures climbing to the mid-90s and heat index values expected to reach the triple digits by the weekend.

Over the previous weekend, Tropical Storm Claudette brought heavy rain and 25-55 mph winds to parts of Louisiana and Mississippi, with some areas of Louisiana collecting nearly a foot of precipitation.

Heavy rain and flooding in June has taken a toll on Arkansas’ crops, with the state estimating $200 million in crop losses. Some locations were hit with nearly 20 inches of rain in just two days, causing an estimated $70 million in losses to soybeans and rice, $60 million to corn, $6 million to cotton, and $1 million to wheat and sorghum.

Cotton planting had progressed to 96-100 percent complete in the region by June 20, while soybean planting was estimated at 95-97 percent complete in Louisiana and Mississippi, 93 percent in Arkansas, and 86-87 percent in Tennessee and Kentucky. Some 81-86 percent of the corn acres in Tennessee and Kentucky were rated as good or excellent on that date.

Sources reported brisk topdress movement of urea on rice in the region, with good or excellent ratings assigned to 86 percent of the acreage in Mississippi and 69-70 percent in the rest of the region. “Shipments on rice are fast and furious at the moment,” said one source. “Hoping we have a strong tail end of the season still ahead.”

Southeast:

Tropical Storm Claudette brought heavy rain and strong winds to a wide swath of the Southeast on June 20-21.

The storm impacted parts of Georgia, Alabama, North Carolina, and Virginia before it moved off the Mid-Atlantic coast, with reports of flooding, power outages, and several isolated tornadoes. Thunderstorms were also reported in Central Florida at midweek, with reports of 50-55 mph wind gusts.

Planting was rapidly winding down in the Southeast, with both cotton and peanuts estimated at 97-100 percent planted in the region by June 20. North Carolina growers also had 84 percent of the soybeans planted by that date.

Good or excellent ratings were assigned to 77 percent of North Carolina’s corn crop on June 20, while cotton in those two categories totaled 68-78 percent of the acreage in the Carolinas, 69 percent in Georgia, 87 percent in Virginia, and 93 percent in Alabama.

“Application is well underway,” said one Florida contact at midweek. “Peanuts look great in most areas. Areas with recent rains have benefited cotton. Dry and irrigated crop looks very good. Corn that was planted on time looks fantastic. Overall, it all looks very good at this time.”