All posts by mickeybarb@charter.net

Sulfuric Acid

U.S. Gulf:

Sources noted ongoing tight supply conditions on the international sulfuric acid markets. Despite price ideas heard at a minimum $170-$175/mt CFR, sources predicted bids in the $190s/mt CFR or higher in the current market.

U.S. Imports:

Sulfuric acid imports for April firmed 24.2 percent, to 356,630 st from the prior year’s 287,245 st. July-April totals stood at 3.38 million st, up 16.2 percent from the year-ago 2.91 million st.

U.S. Exports:

Sulfuric acid exports totaled 27,550 st in April, a 19.8 percent decrease from the year-ago 34,361 st. July-April exports stood at 306,021 st, however, up 47.3 percent from the prior year’s 207,695 st.

Gulf Coast:

Gulf Coast contracts were called $85-$110/st DEL, unchanged from the prior report.

Midwest:

Sulacid delivered to Midwest buyers was quoted even with the Gulf Coast at $85-$110/st DEL.

West Coast:

The West Coast annual market continued to be quoted at $100-$130/st DEL, unmoved from one week earlier.

Brazil:

Brazil imports remained in the $190-$195/mt CFR range, market watchers said.

Ammonium Thiosulfate

Eastern Cornbelt:

Tight supply and pricing volatility continued to describe the regional ammonium thiosulfate market. While some inland terminals were reported as high as $585/st FOB in Ohio in mid-June, sources said limited tons at Terre Haute were being offered for $430-$450/st FOB.

Western Cornbelt:

Sources reported limited ammonium thiosulfate tons priced at the $430-$450/st level FOB Waterloo, Iowa.

Northern Plains:

Sources reported very limited offers of ammonium thiosulfate at $505/st FOB in central North Dakota, up $100/st from last report.

Great Lakes:

The most recent ammonium thiosulfate business was pegged firmly at the $585/st FOB level for limited offers in the Great Lakes region.

Eastern Canada:

Ammonium thiosulfate pricing continued to be reported at C$460-$480/mt FOB in Eastern Canada for the last business, but several sources noted that inventories were sold out for spring.

NPK

India:

National Fertilizer Ltd. issued a tender for 25,000-30,000 mt of various grades of NPKs to close on June 30. Each grade has a different shipping date. An additional order of 20-20-0-13 NPS is part of the tender with a shipping deadline of Aug. 31.

NPK Formula Shipping Deadline
10-26-26 July 31
12-32-16 Aug. 31
12-32-16 Sept. 30

Sulfate of Potash

U.S. Imports:

SOP imports for July-April were up 23.6 percent, to 89,677 st from the year-ago 72,560 st. Imports fell 45.2 percent in April, however, to 3,774 st from the year-ago 6,884 st.

U.S. Exports:

Exports softened 50.6 percent in July-April, to 44,808 st from the year-ago 90,783 st. April shipments were reported at 1,927 st, declining 82.7 percent year-over-year from 90,783 st.

Eastern Canada:

The SOP market firmed to C$915-$940/mt FOB in Eastern Canada, up C$18/mt from last report at the top of the range.

Iran:

ASSC will close a tender for the purchase of 2×40,000 mt of granular potassium sulfate on June 29 (GM June 4, p. 20). Offers will be opened at 2 p.m. the same day.

Crops/Weather

Eastern Cornbelt:

U.S. Drought Monitor

Much of the Eastern Cornbelt was bracing for severe thunderstorms late in the week, along with a return of sweltering temperatures.

Highs in central Illinois climbed to the low-90s on June 17, but were expected to reach the mid-90s on June 18, with heat indices likely to reach the triple digits. Forecasts warned of two rounds of severe weather possible on June 17-18, with some areas bracing for 65 mph winds, ping-pong sized hail, and heavy rain.

Highs in central Indiana were also expected in the mid-90s by the end of the week, along with strong thunderstorms. All of Ohio was under a severe weather risk on June 18 as well, with forecasts warning of damaging winds, hail, flooding rains, and a small risk for a tornado.

Corn emergence had increased to 95-98 percent in the region by June 13, with good or excellent ratings assigned to 68-73 percent of the acreage. Soybean planting was 95-96 percent complete by that date, with emergence at 86-91 percent. Roughly 63-73 percent of the new soybean crop was rated as good or excellent at mid-month.

Western Cornbelt:

Corn, Wheat, Soybean Index

Sweltering temperatures blanketed much of the Western Cornbelt as the week progressed. Highs in the upper-90s were reported in Iowa on June 17-18, with high humidity pushing the index to 98-107 degrees across the state.

The same was true for Nebraska, where temperatures reached the triple digits and a heat advisory was in effect on June 17 for southern and eastern areas of the state. Temperatures near 100 degrees were also in the Missouri forecast for June 18, with record highs expected in some locations.

Sources expected sidedress demand on corn to taper off during the week. The regional corn crop was 97-99 percent emerged with good or excellent rating assigned to fully 87 percent of the acreage in Nebraska, compared with 58-61 percent in Missouri and Iowa. Soybean planting in the region had progressed to 85-100 percent complete by June 13, with Nebraska’s sorghum crop estimated at 87 percent planted by that date.

Northern Plains:

High heat and humidity were reported in the Dakotas at midweek, along with hot, gusty winds. Highs climbed to the upper-80s and mid-90s as the week progressed, providing little relief to growers facing serious drought conditions.

The June 17 U.S. Drought Monitor showed most of North Dakota in extreme-to-exceptional drought, with drought conditions across the northern two-thirds of South Dakota ranging from moderate to extreme.

Temperatures rose to the mid- to upper-80s across Minnesota at midweek, with forecasts warning of potentially severe thunderstorms in southern areas of the state on June 17. That storm activity was also expected to touch parts of southern North Dakota and eastern South Dakota late in the week.

The heat and drought were starting to take a toll on new crops. With the spring wheat and barley crops now 94-100 percent emerged in the Northern Plains, USDA assigned good or excellent ratings to just 17-29 percent of the acreage in the Dakotas, compared with 67-68 percent in Minnesota. South Dakota’s winter wheat was just 22 percent good or excellent as of June 13, with 89 percent of the crop headed.

Corn emergence was rated at 90-98 percent in the Northern Plains, with good or excellent ratings assigned to 42-45 percent of the acreage in the Dakotas and 58 percent in Minnesota. With 83-97 percent of the soybeans emerged by June 13, just 24 percent of the acreage in North Dakota was rated as good or excellent, compared with 45 percent in South Dakota and 61 percent in Minnesota.

Great Lakes:

Dry conditions and gusty winds contributed to a red flag fire warning across southern and western Michigan late in the week, with spotty thunderstorms reported late on June 17. Nearly all of the state was experiencing drought at mid-month, according to the June 17 U.S. Drought Monitor, with a wide band of severe drought conditions stretching across the Lower Peninsula.

Moderate-to-severe drought was also reported across the southern half of Wisconsin in mid-June, but severe thunderstorms were possible across much of Wisconsin on June 17, with the highest potential for severe storms in southwestern and south-central areas of the state.

Corn and soybean crops were 92-97 percent emerged in Michigan and Wisconsin as of June 13, with good or excellent ratings assigned to 65-71 percent of the acreage in Wisconsin and 53-55 percent in Michigan.

Northeast:

Dry conditions and highs in the 80s were reported across interior New England during the week, with a return of high heat and humidity expected by the weekend.

After a round of thunderstorms earlier in the week, central Pennsylvania enjoyed clear skies and comfortable temperatures for most of the week, but high heat and humidity were on tap for the weekend. Maryland was also hit with strong thunderstorms as the week began, with reports of flash flooding on June 14 in the Baltimore area.

Sources reported some sidedress activity on corn in the Northeast in early June. Pennsylvania’s corn crop was 81 percent emerged by June 13, equal to the five-year average, with 76 percent of the acreage rated as good or excellent.

Eastern Canada:

Ontario sources reported scattered thunderstorms at mid-month, along with higher heat and humidity as the week progressed. Hot, dry weather continued in Quebec, with reports of some early crop stress emerging in parts of the province. Unseasonably hot weather was also reported across the Maritimes in early June.

The dry weather in May and early June allowed growers to wrap up planting quickly across the region, and also contributed to heavy fertilizer application volumes. Sources reported some supply constraints during the heaviest application period, with tight inventories persisting into June.

“We are just finishing up sidedress on corn, and are certainly over the hump,” said one regional contact. “I think spring volumes should be good and up over last spring, based on at the end it seemed we were running out of everything and scrambling to finish.”

“Still lots of nitrogen usage going on, but P and K has slowed down,” added another source. “We have had a great planting season here across the Eastern region. Now all we’re waiting for is enough rain through the growing season.”

Transportation

U.S. Gulf:

Handysize Shipping Index

Navigation reportedly resumed through Bayou Sorrel Lock on June 12, following a shutdown due to high water that kicked off on May 11. The falling water levels allowed Port Allen Lock travel to begin normalizing as well, ending an on-again, off-again spate of local-only navigation for much of the previous month. A dredge at Bayou Sorrel on June 10 was projected to work through July 8, with limited impact to travel expected.

With vessels slowly diverting from their previous detour through Algiers, Port Allen Lock delays were quoted at 5-13 hours on June 15. Guidewall damage at Port Allen Lock was noted limiting unassisted tows traveling to the west to a single barge per turn, while westbound boats with two or more cargoes in tow were required to use an assist vessel. Eastbound tows measuring longer than 650 feet were required to utilize an assist boat.

Passage through Algiers Lock is currently limited to four standard barges or two 30,000 mt tankers on unassisted lockages. Thinning congestion has positively impacted travel times through that site, but 10-25 hour delays persisted during the week. The resumption of navigation through the Port Allen Route was projected to slowly reduce Algiers Lock delays to normal levels over the next two weeks.

Bayou Chene movements remained unavailable between 7:00 p.m. and 7:00 a.m. through the early week due to ongoing construction and dive activities. Overnight delays in the 6-12 hour range were reported, while a requirement to use an assist vessel was in place for all travel through the waterway. The restrictions were scheduled to end on June 15.

Sources reported keeping an eye on water levels in the Baton Rouge area, where the river gauge showed depths just shy of the 30-foot action stage on June 15. A move above the 30-foot mark would likely require a return to barge-count restrictions, as well as possible overnight limits on travel through area bridges.

Industrial Lock delays were generally noted in the 10-19 hour range for the week, with a handful of intermittent waits reported up to 51 hours. Travel through Bayou Boeuf Lock carried wait times up to eight hours, while boats passing the Brazos Locks system reported delays as high as 29.5 hours for the period.

A tropical disturbance tracked by the National Hurricane Center in the southwestern Gulf of Mexico on June 17 was expected to strengthen into a named storm by June 19.

Mississippi River:

Sources reported an early-week transit interruption at the Upper Mississippi River’s La Crosse Railroad Bridge, located at Mile 699. Normal navigation patterns were noted resuming on June 14.

Dredging operations continued at Mile 757 during the week, slowing navigation through the area during daylight hours.

Repairs to the Burlington Railroad Bridge, located near Mile 410 on the upper river, required at least one hour of advanced notice to secure travel through the lock. The restrictions were in place daily between 7:30 a.m. and 4:30 p.m., with expectations of a continuance into second-half June.

Lock 2 remains tentatively scheduled for miter gate repairs in July, sources noted, likely shutting the area to daylight-hour travel for intermittent 4-12 hour windows. A guidewall repair project is anticipated to halt daytime travel through Lock 25 in both July and August. Travel was likely to be affected daily between the hours of 6:00 a.m. and 6:00 p.m.

Lock 21 delays were reported in the 5-15 hour range, while six-hour delays were noted through Lock 24. Waits were described at 2-9 hours through Lock 25, while boats passing Lock 27 experienced intermittent 5-7 hour delays.

Illinois River:

Brandon Road Lock, located at Mile 289 on the Illinois Waterway, was projected to undergo a four-hour transit shutdown on June 22, blocking movements between 10:00 a.m. and 2:00 p.m.

Sources reported raised wickets at both Peoria Lock and LaGrange Lock for the week due to falling river levels, prompting a return to locking through both structures.

Ohio River:

Main chamber repairs were underway through June 29 at Meldahl Lock, forcing travel through the site’s 600-foot auxiliary chamber on a 24-hour schedule. Delays for the week were heard in the 5-13 hour range. Sources expected intermittent full-lock shutdowns sprinkled throughout the project.

Normal operation resumed through the New Cumberland Lock secondary chamber on June 11, sources said, ending a lengthy period of maintenance and repairs.

Structural cracks observed at the Markland Lock secondary-chamber miter will reportedly keep that unit closed to navigation through Oct. 29. Traffic has been unable to lock through the secondary chamber since early 2020, although unobstructed access has continued through the primary chamber.

Cannelton Lock is scheduled to begin main chamber maintenance and repairs on June 21, forcing vessels to pass through the secondary chamber. The project is slated to conclude on Nov. 19, with substantial delays anticipated through the entirety of the operation.

The Montgomery Lock main chamber is due to shut from July 26 through Aug. 24 for repairs, leaving tows to lock through the secondary chamber. The Corp reported that the Montgomery main chamber will shut once more for the year, between Oct. 18 and Dec. 17.

The primary lock chamber at Braddock Lock is set to close from Sept. 13 through Oct. 15, leaving vessels to pass through the secondary unit. Main chamber travel will be unavailable at Willow Lock for the entire month of October.

The Tennessee River’s Guntersville and Nickajac Locks were reportedly shut for lock inspection from 6:00 a.m. to 4:00 p.m. on June 14-17. Wilson Lock is scheduled to close for inspection during similar hours on June 28-July 1. Kentucky Lock delays were reported as high as 29 hours on June 16-17.

Repairs to the Cumberland River’s bio-acoustic fish fence (BAFF) system at Cheatham Lock were scheduled to fully block navigation on June 14-24, June 28-July 1, and July 12-22.

Arkansas River:

Towing restrictions continued on the Arkansas River for the week due to persistent high water levels, resulting in maximum tow lengths slashed by 3-6 barges from the typical 12-cargo limit. Forecasts for a potential return to full capacity were revised from the previous June 13 to a broader late-June window.

David D. Terry Lock remains on the books to shut for a complete dewatering and repair operation lasting from Aug. 27 through Sept. 9, halting all river travel at the site. In addition to the full closure, intermittent delays were expected on Aug. 16-26.

E.U. Experts Advance Ban on Potash Imports from Belarus, Report Says

European Union (E.U.) experts tasked with drawing up sanctions against Belarus following the forced landing of a flight and the subsequent arrest of a journalist and his girlfriend on May 23 have agreed to a ban on the European bloc importing potash after reaching a deal late on June 18, according to a Reuters report, citing the Austrian foreign ministry and three diplomats.

E.U. leaders meet on June 24 for a scheduled summit, but it is not clear if they will approve the deal reached by expert officials, according to the report.

The experts have also agreed to restrictions on E.U. purchases from Belarus of oil and oil-related products and tobacco products, among other things, according to the report.

The E.U. is also set to ban new loans to Belarus. According to the report, restrictions on Belarus’ financial sector, if agreed to by E.U. governments, will include a ban on new loans, a ban on E.U. investors from trading securities or buying short-term bonds, and a ban on E.U. banks from providing investment services. E.U. export credits will also end.

Arianne Closes Offering

Arianne Phosphate, Saguenay, Quebec, a development-stage phosphate mining company advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, has closed its previously announced bought deal private placement offering of 11,500,000 units of the company issued at C$0.50 per unit for gross proceeds of $5,750,000.

“Arianne’s hard work over the last few years is starting to pay off and is not lost on our supporters,” said Arianne President Brian Ostroff. “The closing of this financing shows that interest in our company is growing and investors are looking to capitalize on the improving macro. It is also an acknowledgement of Arianne’s leading position in the phosphate area.

“With the company now in a very strong financial position, Arianne will accelerate its move towards development,” he added. “Further, with these additional resources, Arianne can continue to expand some of its work in other potential markets for its high-purity phosphate concentrate.”