All posts by mickeybarb@charter.net

ABR to Partner with Compass on SOP

Australia, News, News Briefs, Specialty, Sulfate of Potash

Australian-based American Pacific Borates (ABR) reported that it is one step closer to bringing a seller onboard to commercialize specialty fertilizer produced at its proposed Fort Cady Borate Mine in California, saying it is in talks with Compass Minerals, Overland Park, Kan., as it seeks a partner that will market and sell its sulfate of potash (SOP). It said it and Compass have inked a letter of intent, stipulating each party will work together to structure the marketing and sales deal.

“There is a strong alignment between ABR and Compass Minerals relative to our ambitions to supply SOP to the growing North American agricultural market,” said ABR Executive Director Anthony Hall. “Compass Minerals has well-established customer markets and supply chain, so we think the collaboration on SOP sales is a sensible one.

“The partnership will allow ABR to focus on its rare Borate business, while also leveraging the combined expertise on the potential to develop new boron enriched specialty fertilizers,” he added.

ABR said the Fort Cady project, situated in the southeastern desert region of San Bernardino County, is just months away from coming into production. ABR said in April 2020 a starter project for production would target 40,000 mt/y of SOP and 9,000 mt/y of boric acid (GM April 17, 2020; Aug. 21, 2020). Full production under its most recent Definitive Feasibility Study (DFS) would reach 362,000 mt/y of SOP and 408,000 mt/y of boric acid.

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, India, Market Watch, Middle East, Northern Plains, Northwestern Europe, Texas, Turkey, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa:

Tampa ammonia prices for May continued to be called $545/mt CFR, with the last done NOLA barges at $545/st FOB.

Reports continue that Incitec Pivot’s Waggaman, La., plant has problems, as well as Mosaic’s Faustina, La., plant. Neither company had responded to inquiries at press time, leaving sources to speculate that ammonia may still be tight in the NOLA area.

Nutrien, which has had two plants down in Trinidad due to mechanical issues, reported that as of April 30, all four ammonia plants in Trinidad were operating, but at reduced rates due to process constraints. As a result of planned maintenance in late Q2 and in Q4 this year, the company estimates it will achieve production equivalent to three plants for the balance of 2021. Supply could be further reduced in May because of gas curtailments.

To add to its supply, Nutrien said it has committed to purchase up to 25,000 mt from Yara Freeport in second-half May at the May market price, and this will be incorporated into its vessel shipment program.

Eastern Cornbelt:

With the preplant ammonia run essentially over and sidedress demand expected to begin as soon as fields dry out, sources continued to quote ammonia pricing at $615-$665/st FOB in the Eastern Cornbelt, with the low confirmed at Kingston Mines, Ill., and Huntington, Ind., and the high at Lima, Ohio.

Other spot offers in early May remained at $625/st FOB Trilla and Wood River, Ill.; $630/st FOB Cowden, Ill., and $650/st FOB Mt. Vernon, Ind., Henderson, Ky.

Western Cornbelt:

Sources quoted the ammonia market at $600-$625/st FOB in the Western Cornbelt, depending on location, with continued reports of delivered offers for as low as $585-$590/st into Missouri for limited tons from Enid, Okla.

Sources said sidedress demand is expected to begin soon. “Lots of guys are talking about UAN being cheaper, so ammonia may lose some tons to UAN, but the ammonia demand will be there in some form,” said one contact.

Northern Plains:

The ammonia market was reported in a narrower range at $620-$650/st FOB regional terminals in early May, with the low at Grand Forks, N.D., and the upper end confirmed at Velva and Leal, N.D. Sources reported the last delivered offers in the $660-$680/st range in North Dakota.

“Logistics have been tight, but not as tight as it would be if it weren’t so dry in North Dakota,” said one regional contact.

Black Sea:

Sources said buyers and sellers are talking about ammonia prices centered on $450/mt FOB, even as major buyer OCP argues the price is $415/mt FOB.

International traders said the OCP price most likely takes into account deductions for rebates and discounts associated with long-term contracts. They point to the $350/mt FOB price out of the Baltics as proof that no one else is accepting the OCP argument.

Sources said normal volumes are moving out of Yuzhnyy. Most of the tons are coming out under contracts, leaving the spot market empty.

Middle East:

Ammonia supply is slowly building up now that more plants are back in operation. Sources said it will take a few weeks before any large quantity of spot material is available for sale.

One trader noted the buildup could allow for some material to be offered in the FACT/India tender if the delivery time is flexible enough. The tender for 7,500 mt closed on May 5 for delivery by the end of June.

Until the results of the FACT tender are known or some other spot deal occurs in the Arab Gulf, the non-contract price remains at $430/mt FOB.

India:

The FACT tender for 7,500 mt closed on May 5. As Green Markets went to press, the buyer had not revealed any information about participating companies or prices.

Northwest Europe:

The ammonia supply and demand situation remains solid, keeping prices stable at $520-$530/mt C&F in the area.

The May price out of the Baltic ports was reportedly settled at $450/mt FOB. The price represents a softening from the past two months, but still shows enough strength to prevent the market from getting nervous over too rapid a decline. The price also confirms that the Yuzhnyy price should be around $450/mt FOB, rather than the $415/mt FOB level that OCP is arguing for.

Turkey:

First-quarter ammonia imports in Turkey were down 31 percent according to Trade Data Monitor, to 242,000 mt from 350,000 mt during the same period in 2020. Black Sea neighbors Russia and Ukraine were the top two suppliers at 167,000 mt and 46,000 mt, respectively.

March 2021 imports were down slightly, to 108,000 mt from 111,000 mt in March 2020. Russia supplied the bulk of the urea this year at 70,000 mt, with Ukraine sending 27,000 mt.

Urea

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

U.S. Gulf:

NOLA granular urea barges were reported at $350-$372/st FOB, down from the week-ago $363-$390/st FOB. The higher end of the range represented first-half May barges, with the lower end for full-month.

Eastern Cornbelt:

Urea prices edged up to $420-$440/st FOB in the Eastern Cornbelt, roughly $10/st higher than last report, with the low reported out of spot Illinois River terminals. The Cincinnati, Ohio, urea market was quoted firmly in the $435-$440/st FOB range in early May.

Western Cornbelt:

Urea pricing was steady at $420-$440/st FOB in the Western Cornbelt, with the low reported at St. Louis, Mo., and the high at Port Neal, Iowa.

Northern Plains:

The urea market had reportedly firmed to $425-$430/st FOB St. Paul, Minn., with delivered tons pegged at $480-$485/st in North Dakota, up $5-$10/st from last week.

Northeast:

Urea prices were quoted at $435/st FOB Fairless Hills, Pa., for May-June tons, down $10/st from last report.

Eastern Canada:

Sources reported a broad range of urea prices in Eastern Canada in early May, but the regional average was virtually unchanged from last report. The market was pegged at C$580-$640/mt FOB in the region, depending on location, compared with C$602-$620/mt in late March.

India:

After some confusion about the final number, sources confirmed that 2.2 million mt of urea were offered by 13 companies. The lowest prices showed a $21-$23/mt drop from the RCF tender earlier this year.

Ameropa offered the lowest prices for East Coast and West Coast deliveries at $356.99/mt CFR and $358.99/mt CFR, respectively. The Ameropa offers were weighted to the West Coast, with 153,000 mt to be divided among three ports. The price-setting East Coast offer from Ameropa was for one cargo of 61,500 mt to be unloaded at Kakinada.

The offers by two producers were higher than the levels reported by sources. Fertiglobe offered 45,000 mt at $353/mt FOB, and PIC/Kuwait offered 40,000 mt at $348/mt FOB. MMTC countered those prices with $323/mt FOB. Sources said they did not expect the producers to accept that bid.

Offering Company Quantity Offered (mt) US$/mt CFR Discharge Port
Ameropa 61,500 356.99 Kakinada L1 ECI
51,500 358.99 Mundra L1 WCI
51,500 358.99 Pipavav
50,000 358.99 Mundra
Koch 60,000 377.00 Pipavav
50,000 377.00 Mundra
60,000 369.69 Gangavaram
60,000 369.69 Krishnapatnam
60,000 369.69 Vizag-Karaikal
50,000 369.69 Kakinada
Swiss Singapore 46,000 363.60 Kandla
46,000 363.45 Pipavav
46,000 362.05 Karaikal
46,000 363.50 Mundra
46,000 362.00 Gangavaram
46,000 362.10 Kamrajar
46,000 363.55 Hazira Adani
Continental 50,000 372.50 Kandla-Mundra
50,000 374.50 Pipavav-Karaikal-Krishnapatnam-Kakinada-Vizag-Gangavaram-Tuna
Keytrade 45,000 364.81 Kandla
50,000 377.00 Paradip
50,000 377.00 Kakinada
Gavilon 50,000 385.05 Krishnapatnam
50,000 387.05 Mundra
Torbert 65,000 365.75 Gangavaram-Krishnapatnam-Karaikal-Kakinada-Pipavav-Tuna
65,000 372.75 Mundra-Pipavav-Tuna
Transglobe 50,000 363.50 Pipavav
50,000 360.90 Krishnapatnam
Samsung 45,000 367.25 Gangavaram
50,000 370.00 Krishnapatnam
45,000 371.00 Karaikal
50,000 369.60 Mundra
50,000 369.70 Rozy
45,000 369.50 Pipavav
50,000 373.50 New Mangalore
Dreymoor 52,000 363.91 Pipavav
52,000 361.87 Kakinada
Midgulf 63,000 370.10 Gangavaram-Krishnapatnam-Kakinada
63,000 372.10 Mundra-Tuna
Fertiglobe 45,000 372.00 Kandla-Mundra
50,000 374.00 Pipavav-Kakinada-Gangavaram-Tuna
376.00 Karaikal-Krishnapatnam-Vizag

Of the 2.2 million mt offered, East Coast offers totaled 968,500 mt; the West Coast was offered 1.043 million mt; 100,000 mt to either coast; and 85,000 mt directly from producers. Sources said the emphasis on the West Coast once again showed an inclination to avoid Chinese product.

The wide range in pricing ideas can be seen in the levels offered by Gavilon at $385.05/mt CFR East Coast and $387.05/mt CFR West Coast. The gap between the average price and the lowest prices of the offers in this tender was also greater than in the last tender.

In the MMTC tender that just closed, the average East Coast price was $369.19/mt CFR and $367.87/mt CFR for the West Coast. The gap between these prices and the winning prices is $8-$12/mt. In the earlier RCF tender, that gap was $6-$9/mt even though the settled price was much higher.

Traders said unlike last year at this time, India is not as desperate for tons. Going into the tender, expectations by traders for the final take were for less than 1 million mt to be awarded. Many put the final take at 600,000 mt to 700,000 mt, with a couple of estimates of 900,000 mt. This came up against reports that MMTC was hoping to buy about 1.5 million mt.

It now appears as if the final take will be even lower than expected. Sources reported that by the early Friday morning deadline in India, eight companies accepted the MMTC counterbids based on the Ameropa numbers. MMTC still has to agree to each of the offers. Some additional tons may still be added to the final number, but it looks as if MMTC will take only 550,000 mt from this tender.

Offering Company Quantity (mt) Estimated Source
Ameropa 214,500 Oman-Ukraine-China
Dreymoor 52,000 Ukraine
Samsung 50,000 Egypt
Continental 50,000 Egypt
Midgulf 47,500 Oman
Swiss Singapore 46,000 Indonesia
Keytrade 45,000 Oman
Fertiglobe 45,000 UAE

If this is the final number, MMTC will purchase 25 percent of what was offered. This will represent the second-lowest percentage take in the past two-and-a-half years of urea tenders. The lowest mark was last year, when MMTC took only 6 percent of the offered tons in the July 7 tender. The average take in the previous two years has been 47 percent.

As the industry waited for the tender results to be announced, sources said Chinese and Arab producers were digging in their heels against selling too many tons at prices they considered too low. The netback to China from India’s East Coast price is put at $332-$338/mt FOB. Producers have said they will not accept anything under $340/mt FOB. Likewise, the netback to the Arab Gulf is put at $337-$340/mt FOB at a time when producers are pushing for $350/mt FOB.

However, for the Chinese producers, the freight market has been much more volatile, leading to more uncertainty and a desire by traders to push the netback price even lower. And Arab producers have appeared willing to talk with traders about deals in the upper-$330s/mt FOB.

2020 – India Urea Tenders
Closing Date Agency Quantity Awarded (‘000mt) Quantity Offered (‘000mt) WC Price US$/mt CFR EC Price US$/mt CFR Awards as percentage of Offers
3-Apr-20 RCF 747.00 1,654 251.90 257.65 45%
7-May-20 MMTC 632.00 2,400 226.81 231.90 26%
24-Jun-20 RCF 628.00 2,090 238.45 237.35 30%
17-Jul-20 MMTC 117.50 2,060 242.50 240.75 6%
30-Jul-20 MMTC 697.55 1,630 257.70 259.50 43%
10-Aug-20 RCF 952.00 1,285 289.00 290.50 74%
26-Aug-20 MMTC 1,795.50 2,340 288.89 283.52 77%
9-Oct-20 RCF 2,184.25 3,627 279.94 279.25 60%
1-Dec-20 MMTC 1,273 2,285 284.70 286.50 56%
Average 1,003.0 2,152.2 262.21 262.99 47%
Total 9,026.8 19,370
2021 – India Urea Tenders
Closing Date Agency Quantity Awarded (‘000mt) Quantity Offered (‘000mt) WC Price US$/mt CFR EC Price US$/mt CFR Awards as percentage of Offers
22-Mar-21 RCF 802.5 1,926.0 380.18 379.87 42%
4-May-21 MMTC 550* 2,196.5 358.99 356.99 25%
* Estimated

China:

Sources said stockpiles at the Chinese ports are building, and the estimated results from the MMTC tender will not help that situation. The amount varies from 600,000-800,000 mt ready for export, depending on who is talking. Sources said some of that tonnage may include Iranian product shipped into Chinese warehouses and processed for re-export.

Initial reports out of India indicate MMTC will take only one cargo – most likely 61,5000 mt via Ameropa – in its tender. This is the second tender where the Indians have stepped away from Chinese product. In the earlier tender this year, RCF did not take as many tons from China as expected. That move in March left more urea in reserve in China than the producers wanted.

The netback to China from India, based on the MMTC tender price, is $332-$338/mt FOB at a time when producers are arguing for $340/mt FOB. Some are even suggesting that the freight situation could take the netbacks even lower into the upper-$320s/mt FOB.

Sources said the dynamics of the market are against the producers, however. The Chinese domestic season is just about over, with only a few small orders still needed to be placed. That means production for the rest of May and all of June and July will be for export.

Some small lots will be sold to regional buyers at higher netbacks, but the only place to move large quantities of urea during the summer is India. The markets in Europe and the Americas are done, again leaving only India as a major buyer for the next few months.

Until the agreements are signed for delivery to India, the price continues to hover in the upper-$330s/mt FOB for prills and low-$340s/mt FOB for granular.

Middle East:

Arab Gulf producers made their pricing intention noticeably clear in the two offers made in the Indian tender. Producers are looking for $350/mt FOB for their product. Unfortunately for them, deals made this week undercut that position.

Sources reported a sale at $340/mt FOB from Oman for shipment in the second half of June. Almost at the same time, traders were reporting small deals at $332/mt FOB from the area, which fits in with the estimated netbacks from the Indian tender. Producers pointed to the paper market, which is now showing prices for May and June at $347.50/mt FOB.

Offers into India’s West Coast dominated the MMTC tender at 1.04 million mt. At least three cargoes for the West Coast are expected to come from Yuzhnyy and possibly one or two from Indonesia, but the bulk of any awards will come from the Arab Gulf.

Sales out of Egypt at $350/mt FOB were reported this week. Sources said the most likely source for the Fertiglobe offer of $353/mt CFR to MMTC was Egypt. Freight costs, however, put the netback to Egypt in the low-$330s/mt FOB, at best. Some have even argued that the price needs to be in the $320s/mt FOB to be competitive in India.

The paper market is reporting a May price of $345/mt FOB and June at $347.50/mt FOB.

Indonesia:

After a dramatic sale of tons to Gavilon at $350/mt FOB last week, Kaltim reportedly settled on a deal to Swiss Singapore at $325/mt FOB. Sources said the freight rates could allow the tonnage to be part of an award that Swiss Singapore might get from India.

The Indonesian producers have called a number of selling tenders, only to scrap them when prices did not go their way. The producers would then go into private talks with traders. The results of these talks led to the dramatically high $350/mt FOB sale and a more recent deal at $325/mt FOB. Now the talks are focused on selling at $335/mt FOB.

Sources said the most recent deal indicated that Kaltim and the other producers are “motivated” sellers, looking to push their product offshore. One source also noted the possibility that there is some political interference taking place in the selling process that makes it look disorganized.

Black Sea:

Sources said the netback for any product heading to India under the MMTC tender would be just under $320/mt FOB. Freight from Yuzhnyy to the Indian West Coast is pegged in the low-$40s/mt.

Sources said they could see two or possibly three cargos coming from Yuzhnyy to India if the right freight rate is found. Sources said Dreymoor for sure has at least one cargo from the Black Sea in its offer to MMTC. Other traders speculated that Ameropa also has at least one in its winning offer.

Turkey:

First-quarter imports of urea in Turkey were down about 21 percent, according to Trade Data Monitor, at 763,000 mt from 964,000 mt during the same period in 2020.

The bulk of this year’s imports came from Oman at 299,000 mt and Egypt at 269,000 mt. Iran sent only 79,000 mt of urea to Turkey this year, compared with 273,000 mt during the same period last year. March imports were up 7.7 percent, to 246,000 mt from 228,000 mt in March 2020, with most of the March 2021 tons coming from Egypt at 142,00 mt.

Brazil:

Urea prices tightened at the low end of the scale, to $375-$385/mt CFR at Paranagua. New business at the port was for small quantities of roughly 5,000 mt in the mid-$370s/mt CFR. This price comes on the heels of a deal last week that moved prices into the mid-$380s/mt CFR.

Buyers inland have been hesitant to purchase until they can assess the impact of the MMTC/India urea tender. Sources reported little activity by farmers or blenders.

The Rondonopolis price showed a wider spread at $450-$535/mt FOB ex-warehouse, illustrating the mixed emotions buyers seem to have about the market. The mild enthusiasm for urea was also seen in Sorriso, where prices moved to $500-$510/mt FOB ex-warehouse. The barter rate for 1 mt of urea in Rondonopolis remains at 65 bags of corn.

Brazil Urea Prices
Terminal/City US$/mt FOB ex-warehouse
Week ending 04/30 Week Ending 05/07
Rondonopolis 485-510 450-535
Sorriso 444-505 500-510

UAN

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

U.S. Gulf:

Nothing new was reported in the NOLA UAN barge market, with prices continuing to be quoted generally at the $300/st ($9.38/unit) FOB mark. East Coast vessel business continued to be called $345-$350/mt CFR.

CF this week told analysts that its previous UAN fill programs have been out as early as June and as late as August. It expects it will be closer to the latter this year, with the current UAN season stretching into early June.

Eastern Cornbelt:

The UAN-32 market was unchanged at $325-$345/st ($10.16-$10.78/unit) FOB in the Eastern Cornbelt, with the low at Mount Vernon and Seneca, Ill., and the high at Burns Harbor, Ind. Sources quoted the Cincinnati market at $332/st ($10.38/unit) for UAN-32 and $285-$290/st ($10.18-$10.36/unit) FOB for UAN-28.

“UAN remains firm,” said one industry source. “Supply seems to be tightening and buyers are starting to tie down June-July supply.”

Western Cornbelt:

UAN-32 was unchanged at $325-$345/st ($10.16-$10.78/unit) FOB in the region, with the high out of Iowa terminals and the low again reported at St. Louis. “The big UAN pull in the Cornbelt should begin next week,” commented one source.

Northern Plains:

UAN-32 pricing remained at $357/st ($11.16/unit) FOB Winona, Minn., in early May. The UAN-28 market in North Dakota was pegged at $320/st ($11.43/unit) FOB terminals and up to $360/st ($12.86/unit) DEL for tons from Canada.

Northeast:

The UAN-32 market was pegged at $325-$340/st ($10.16-$10.63/unit) FOB in the Northeast, down $5-$15/st from last report, with the high confirmed at Baltimore, Md., and the low at Fairless Hills for May-June offers. Pricing out of terminals in upstate New York remained at the $360/st ($11.25/unit) FOB level in early May.

Eastern Canada:

The UAN-28 market had reportedly firmed to C$393-$425/mt (C$14.04-$15.18/unit) FOB in Eastern Canada, up C$15/mt at the upper end of the range. UAN-32 pricing was pegged at C$449-$451/mt (C$14.03-$14.09/unit) FOB on a spot basis in the Ontario market.

Ammonium Sulfate

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

U.S. Gulf:

Ammonium sulfate barge prices moved to $260-$270/st FOB, up from the week-ago $255-$265/st FOB. While $260/st FOB was heard early in the week, sources said it was not there for long.

This week domestic producers reposted their NOLA barge postings, with Interoceanic (IOC) at $275/st and American Plant Food (APF) at $276/st FOB.

Eastern Cornbelt:

Higher producer postings continued to push up granular ammonium sulfate prices in Eastern Canada, with sources now quoting the regional market in a broad range at $300-$330/st FOB, depending on location and supplier.

New postings from IOC on May 3 included $310/st FOB Illinois River terminals and $315/st FOB Ohio River terminals, up $10-$15/st from the company’s last reference prices on March 24.

Western Cornbelt:

The week began with a round of new and higher ammonium sulfate postings from producers. IOC on May 3 raised prices $5-$20/st, depending on location, with new postings reported at $295/st FOB Houston, Texas; $300/st FOB St. Louis, Mo., and Delta terminals; $310/st FOB Tampa, Fla., and Upper Mississippi River terminals; $325/st rail-DEL in the Southern Plains; and $330/st FOB Sioux City, Iowa.

IOC attributed the increase to strong demand and tight inventories, and said truck, rail, and barge lead times are longer and transit times slower this year.

Also on May 3, APF moved its ammonium sulfate prices up to $290-$300/st FOB Freeport, Texas, up from the last reported range of $270-$275/st FOB. APF said the increase is due to limited supply and increasing input costs, and follows “one of the most general rains in Texas in 20 years.”

Northern Plains:

The granular ammonium sulfate market was quoted at $310-$330/st FOB in the Northern Plains, with the low at St. Paul and the high at Sioux City. Delivered tons in the Dakotas were pegged in the $320-$335/st range in early May.

IOC on May 3 reposted ammonium sulfate at $310/st FOB Upper Mississippi River terminals, $330/st FOB Sioux City, and $335/st rail-DEL in the Northern Plains. The last postings from AdvanSix on April 14 included granular tons at $320/st FOB Winona and $325/st FOB Brooten, Minn.

Northeast:

Ammonium sulfate prices were inching higher on reports of tight supply. AdvanSix on April 29 raised prices for all ammonium sulfate products by $15/st in the Northeast, Southeast, and Mid-Atlantic regions, with the Hopewell, Va., granular price firming to $300/st FOB. The market FOB East Liverpool, Ohio, was tagged at the $320/st FOB level.

New postings for mid-grade and standard ammonium sulfate at Hopewell were reported at $280/st and $260/st FOB, respectively.

Eastern Canada:

Granular ammonium sulfate pricing in Eastern Canada was up significantly from last report. Sources quoted the regional market at C$459-$515/mt FOB, depending on location, up from C$407-$465/mt FOB in late March.

China:

The ammonium sulfate supply and demand picture is balancing out in Asia. Sources said prices remain in a narrow band in the upper-$150s/mt FOB.

Turkey:

First-quarter ammonium sulfate imports in Turkey were up 76 percent, according to Trade Data Monitor, to 265,000 mt from 150,000 mt in the same period last year.The main supplier this year was China at 172,000 mt, followed by South Korea at 51,000 mt.

March 2021 imports were reported at 118,000 mt, up 14 percent from 104,000 mt in March 2020, with this year’s March imports split almost evenly between China and South Korea.

Brazil:

Ammonium sulfate prices came off slightly to $193-$200/mt CFR at Paranagua. At the same time, the price widened and came up in Rondonopolis to $315-$355/mt FOB ex-warehouse. Sorriso was reported at $320/mt FOB ex-warehouse.

Inland purchases remained small and opportunistic, according to sources. Buyers see no need to rush into any major buying. Sources said the purchases made are just to take advantage of a cargo to top off their own holdings. None are taking long positions.

The barter rate for corn remained steady in Rondonopolis at 39 bags for 1 mt of amsul.

DAP/MAP

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

Central Florida:

DAP trucks loading from Central Florida were reported rising to $570/st FOB, up from $550/st FOB in the prior report. MAP postings moved up $15/st, to $595/st FOB from the week-ago $580/st FOB.

U.S. Gulf:

NOLA phosphate barges were seen bouncing to fresh nearby highs, driven by higher corn prices and ongoing supply uncertainty in both the domestic and import phosphate markets.

Barges loading in a wide May-September window were reported trading at $555/st FOB on April 30 before firming to $565/st FOB by May 5. New offers were pegged even with the top of the range at $565/st FOB on May 6.

MAP barges followed a similar curve, kicking off early-week trading at $580/st FOB before rising to $590/st FOB by midweek. Some expected that upward momentum to carry through to $600/st FOB in the short term.

Sources attributed the strong prices to nine-year highs posted in the corn market during the week. In addition, continued reports of early-summer production curtailments at Mosaic’s Faustina production complex, coupled with import reductions from the earlier DOC ruling on countervailing duties on tons sourced from Morocco and Russia, led some to describe a “structural deficit” in fall dry phosphate supply.

The physical DAP barge market was reported in the $555-$565/st FOB range for the week, firming from $530-$550/st FOB in the prior report. MAP barges lifted to $580-$590/st FOB, up from $555-$565/st FOB previously.

U.S. Exports:

With most excess supply targeted for domestic fulfillment during the current period, sources said a lack of spot availability prevented sellers from testing the current offshore market. Last-done, achieved on a 7,000 mt DAP cargo selling into the Latin American markets, continued to be noted at $580/mt FOB.

Eastern Cornbelt:

DAP was up slightly to $605-$615/st FOB Cincinnati, Ohio, and other river terminals in the Eastern Cornbelt, with supply described as tight. MAP pricing was higher as well, with the river terminal market pegged at $625-$650/st FOB in the Eastern Cornbelt, up from $620-$635/st at last report.

“The Ohio River is still seeing some outages between barges as shipments from terminals are moving quicker than resupply,” said one source.

Western Cornbelt:

DAP remained at $595-$605/st FOB in the Western Cornbelt, with the low reported at St. Louis and the upper end in the Iowa market on a spot basis. MAP was quoted at $615-$635/st FOB in the region, up $5-$10/st from last report, depending on location.

Northern Plains:

DAP pricing FOB St. Paul was reported in the $595-$605/st FOB range, with MAP remaining at $625-$645/st FOB in early May. Delivered MAP in western North Dakota was steady at $670-$680/st from Western U.S. shipping points.

Northeast:

DAP pricing was quoted at $620/st FOB East Liverpool in early May, up $15/st from last report. The MAP market was pegged at $640/st FOB East Liverpool and $620/st FOB Fairless Hills for May-June tons, but sources said Fairless was out of product until May 18.

In the Southeast, Nutrien confirmed that DAP and MAP prices at Aurora, N.C., and White Springs, Fla., have moved up to $595/st FOB for new orders.

Eastern Canada:

MAP pricing in Eastern Canada was higher at C$790-$805/mt FOB, up roughly C$43/mt on average from late March and a full C$99/mt higher than mid-February pricing levels. DAP pricing FOB Montreal was reported at a firm C$825/mt FOB in early May, reflecting a C$40/mt increase since last report.

Saudi Arabia:

Phosphates loading from Saudi Arabia reportedly firmed to the $545-$560/mt FOB range, rising from $535-$545/mt FOB at last report.

China:

Producers are pushing for $540/mt FOB for DAP, but seem ready to deal in the low-$530s/mt FOB. Sources reported deals done by producers at $532/mt FOB even as they argue for the higher amount. There is even an unconfirmed report of $530/mt FOB being done.

The DAP producers are looking at growing demand from India and Pakistan to at least stabilize the market. However, these two buyers are pushing hard for lower prices.The MAP producers have turned their eyes to Brazil, where demand is ready to break loose amid complaints of limited tonnage.

Bangladesh:

A DAP tender by BCIC for 100,000 mt will close on May 29. While BCIC tenders rarely set pricing patterns, they are often good indicators of how much the Chinese producers are willing to move to make a large deal.

India:

Prices have softened as buyers push harder against the Chinese producers. Sources said the DAP price has moved into the mid- to upper-$550/mt CFR. International traders said they expect to see more private deals done as demand steps up.

RCF closed a tender for DAP or MAP. Five companies offered tons in the tender, but no price have yet to be released.

Brazil:

The landed MAP price at Paranagua dipped slightly at the lower end of the range, to $585-$610/mt CFR. Sources said the market at the ports was quiet and few deals were concluded.

The market price at Rondonopolis widened to $700-$757/mt FOB ex-warehouse. Sources said this move indicates that buyers are unsure which way to jump.The barter rate for 1 mt of MAP in Rondonopolis held even at 37 bags of soybeans. The rate in Southern Goias remained at 34.7 bags of soybeans or 47.5 bags of corn for 1 mt of MAP.

Phosphoric Acid

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

Eastern Cornbelt:

Phos acid prices in the Eastern Cornbelt moved up on May 1, firming to $13.95/unit rail-DEL in Illinois and $14.10/unit rail-DEL in Ohio, up $0.50/unit from April.

Western Cornbelt:

Phos acid pricing moved up $0.50/unit on May 1, with the market firming to $13.85/unit rail-DEL in Nebraska, Missouri, Iowa, Colorado, Kansas, and New Mexico; and $13.95/unit rail-DEL in Texas and Louisiana.

Northern Plains:

Phos acid postings for May were reported at $13.95/unit rail-DEL in Minnesota and Wisconsin, and $14.10/unit rail-DEL in the Dakotas, up $0.50/unit from April.

India:

Contracts between Moroccan phosphoric acid producer OCP and buyers in India were reported at $998/mt P2O5 CFR for the second quarter, a $203/mt increase from $795/mt P2O5 CFR in Q1.

Ammonium Polyphosphate

Ammonium Polyphosphate, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt:

10-34-0 was reportedly up $10-$20/st, to $580-$600/st FOB in the Eastern Cornbelt, with the low confirmed at Cincinnati.

Western Cornbelt:

The 10-34-0 market was quoted at $575-$595/st FOB in the Western Cornbelt, depending on location.

Northern Plains:

10-34-0 pricing was pegged at $590-$600/st FOB and $600-$610/st DEL in the Northern Plains.

Northeast:

The 10-34-0 market in upstate New York remained at $570/st FOB in early May, unchanged from last report.