All posts by mickeybarb@charter.net

Emmerson Shares Start Trading on London’s AIM Market

Isle of Man, London, Morocco, News, News Briefs, Potash

Potash junior Emmerson plc, Isle of Man’s, ordinary shares began trading on the AIM market of the London Stock Exchange (LSE) at 8:00 am (BST) on April 27. In conjunction with this, the company said its ordinary shares on “the Official List” and from trading on the LSE’s Main Market was canceled. Emmerson’s ordinary shares will continue to trade under the TIDM, or ticker “EML.”

Emmerson announced in early March its proposal to apply for admission to list on the LSE’s AIM market and cancel its listing on the exchange’s Main Market (GM March 5, p. 32). The company, which is focused on developing the Khemisset potash project in northern Morocco, said the AIM is more suited to the company’s current size and strategy, and will offer greater flexibility for corporate transactions.

Poland Plans Temporary VAT Cut for Some Fertilizers

News, News Briefs, Poland, Specialty

Poland plans to temporarily lower the VAT rate on some fertilizers to 8 percent, according to a report by the Polish press agency PAP, citing the country’s Finance Ministry legislative agenda. The regulation is set to be passed next month.

The lower rate would apply to substances improving soil properties and growth stimulators, as well as organic and organic-mineral substrates.

If passed, the reduced rate would be in force between May 1, 2021, and April 30, 2022.

No further information was available at press time.

June Vote Planned for Proposed MaxYield, NEW Co-op Merger

Featured, News, Western Cornbelt

The Board of Directors of MaxYield Cooperative, West Bend, Iowa, announced that a proposed merger with NEW Cooperative Ind., Fort Dodge, Iowa, will now proceed to a member vote in June. The two Iowa co-ops announced in February that a unification study had been initiated (GM Feb. 19, p. 1) after initial overtures were made in December 2020.

Howard Haas, Chairman of MaxYield’s board, said the directors of MaxYield and NEW Co-op met individually at the end of March and each board voted in favor of proceeding with the merger proposal. Substantial income enhancements, cost savings, and broader service offerings generated from the merger were highlighted in the presentations at the board meetings.

“The increase to patronage earnings available to our members using the combined cooperative, as well as greatly improved cash flow, will accelerate the redemption and retirement of MaxYield allocated equity earned in prior years,” Hass said. “This has been a major focus of unification discussions and are just a few of the real benefits our members would see.”

Haas said a combined organization will also have the balance sheet and fiscal strength to capitalize on opportunities for members, have long-term staying power in the industry, and accelerate a schedule of facility, rolling stock, and equipment upgrades across MaxYield’s trade area.

“We’ve identified additional grain marketing and feed manufacturing opportunities, and access to the Canadian National and Burlington Northern rail markets will enhance grain marketing and fertilizer sourcing opportunities for members,” Haas said. He noted as well that NEW’s Port of Blencoe project on the Missouri River, which began construction last July (GM Aug. 14, 2020), would provide improved crop nutrient sourcing for the combined business.

Haas said member informational meetings will be held in early June. A membership vote will occur with merger plans and ballots sent out to all eligible MaxYield voting members by mid-June with a planned final vote count on July 2, 2021. If approved, the merger would become effective on Aug. 1, 2021.

Under the terms of the proposed merger, NEW Co-op will continue to operate MaxYield’s Garner and Britt feed mills after the unification. NEW Co-op would also continue to offer MaxYield’s SciMax Solutions brand as the grower learning group platform alongside NEW’s MAPS brand. NEW would continue the harvest on-farm grain pick up program at least through the fall of 2021 and will be reevaluated prior to the fall of 2022.

“It’s also important to know that all full-time MaxYield team members will be offered jobs with NEW Co-op, so our members and clients will work with the same great team members that they do today,” Haas said.

MaxYield currently offers grain, seed, agronomy, energy, and feed products and services from 25 Iowa locations. The company also operates three Cenex convenience stores in Iowa, and provides grain origination and accounting services for three Iowa feed mills. NEW Co-op operates agronomy, grain, energy, precision ag, and feed divisions from 39 Iowa locations, and has 5,500 member-owners throughout western and northwestern Iowa. The traditional trade areas of both co-ops are contiguous.

FCA, Alceco to Proceed with Merger

Featured, News, Western Cornbelt

The Boards of Directors of First Cooperative Association (FCA), Cherokee, Iowa, and Alceco, Albert City, Iowa, have voted unanimously to proceed with a proposed merger of the two cooperatives. The decision follows a merger study that was initiated in December (GM Dec. 18, 2020).

“The farmer members who make up the Alceco and FCA boards agreed that the benefits of a new, combined organization retaining local management and local board representation is the best path forward to support the continued success of our cooperative to benefit our members, our employees, and the communities we serve here in northwest Iowa,” said Jim Franzmeier, Board Chair for Alceco.

A statement by the two co-ops said the merger study had identified “increased opportunities for the future of both organizations.” The combined cooperative would have 32 grain and agronomy facilities in Iowa, with home offices in Cherokee and Albert City.

“This is a merger of equals,” stated Charles Specketer, Board President of FCA. “By joining together, we will become the leading cooperative in northwest Iowa, which provides significant advantages to our members. This merger will also enable enhanced benefits for employees, expand employee growth and development, and help recruit and retain the best and brightest team right here in our area.”

Members will now receive information by mail describing the voting process, with a final decision on the merger anticipated by the end of June 2021. The boards also announced that Troy Upah, current Alceco CEO, will serve as CEO of the combined organization, with Merle Lyons, FCA General Manager, serving as Chief Operating Officer (COO).

Alceco, which stands for Albert City Elevator Cooperative, was formed in 1905 but grew over the decades through multiple expansions and acquisitions, including a merger in 2008 with Midwest Farmers Cooperative.

Alceco partnered with Cargill in 1997 to form Ag Partners LLC, a joint venture that provides grain, agronomy, feed, and petroleum products and services from 17 retail and wholesale locations in Iowa. Ag Partners now operates as a solely-owned subsidiary of Alceco after the company announced last summer that it had acquired full ownership from Cargill (GM July 31, 2020).

FCA provides agronomy, energy, grain, and feed products and services from 20 locations in northwestern Iowa, with a staff of 182 full-time and more than 40 part-time employees. The company is recognized as the oldest continuously active cooperative elevator in the nation, tracing its roots to 1887, when Farmers Cooperative Elevator of Marcus, Iowa, was incorporated.

FCA was formed under its present name in 1997 through the merger of four Iowa cooperatives – Farmers Cooperative Association in Marathon, Agland Coop in Alta, Farmers Cooperative in Aurelia, and Farmers Cooperative in Cleghorn.

Last month, FCA also announced that it had signed a purchase agreement to acquire the seed, crop protection, and commercial fertilizer business of Farm Nutrients LLC and its agronomy center in Rembrandt, Iowa (GM April 2, p. 1). Farm Nutrients is owned by Rembrandt Enterprises Inc., Spirit Lake, Iowa, which will retain the chicken litter management and spreading portion of the business.

Ma’aden 1Q Profit Swings Back to Black, But Misses Estimates

Earnings, News, Saudi Arabia

Saudi Arabian Mining Co. (Ma’aden), Riyadh, reported a net profit after zakat and tax for the first quarter of SAR761.2 million (approximately $202.9 million at current exchange rates) versus a net loss of SAR353.3 million for the year-ago period, missing the average analyst estimate of SAR797.3 million.

The analysts’ estimates ranged from SAR741.0 million to SAR891.0 million, according to a Bloomberg Consensus (three estimates).

First-quarter revenue came in 25 percent up on the year, at SAR5.45 billion from SAR4.36 billion, and also missed the average analyst estimate of SAR5.90 billion (range SAR5.38 billion to SAR6.13 billion, according to the Bloomberg consensus.

Ma’aden cited an increase in the average realized selling price for all products, as well increased sales volumes for all products except phosphate fertilizer, ammonia, and gold.

The company’s share in net profit of joint ventures and other income increased for the quarter, compared with a year earlier.

Mosaic, Nutrien Expected Back in Black

Earnings, Eastern Cornbelt, News, Saskatchewan, Tampa

The three largest North American-based fertilizer companies are all expected to show much improved first-quarter results over the year-ago quarter, according to the Bloomberg Consensus, the average projection from major analysts. All three will report results the week of May 3.

The Mosaic Co., Tampa, which posted a year-ago loss of $203 million, should see the biggest increase in income to an average estimate of $233.7 million, with analysts reporting a low of $204.8 million and a high of $273.9 million. The company benefits not only from the run-up in fertilizer prices due to higher crop prices, but also the positive countervailing duty decision on phosphate imports from Morocco and Russia. Net sales are put at $2.3 billion, up from the year-ago $1.8 billion, while adjusted EBITDA is seen as $562.3 million, up from $214 million.

Nutrien Ltd., Saskatoon, is also expected to pull out of the red, with the average earnings estimate put at $38.3 million compared to the year-ago loss of $35 million. Not all analysts thought the company would make it into the black, as the analyst range was minus $8 million to positive $77.7 million. Net sales are expected to be up at $4.4 billion from $4.2 billion, while adjusted EBITDA was put at the devilish $666.6 million, up from $508 million.

Net income for CF Industries Holdings Inc., Deerfield, Ill., was tagged at $119.9 million, up from the year-ago $68 million. The analyst range was $73 million to $264.4 million. Revenues are seen at $1.1 billion, up from $971 million and adjusted EBITDA was put at $390.6 million, up from $318 million.

Mosaic 1Q-21 Analyst 1Q-20 Actual
Net Income $233.7 M ($203 M)
Net Sales $2.3 B $1.8 B
Adjusted EBITDA $562.3 M $214 M
Nutrien 1Q-21 Analyst 1Q-20 Actual
Net Income $38.3 M ($35 M)
Net Sales $4.4 B $4.2 B
Adjusted EBITDA $666.6 M $508 M
CF 1Q-21 Analyst 1Q-20 Actual
Net Income $119.9 M $68 M
Net Sales $1.1 B $971 M
Adjusted EBITDA $390.6 M $318 M

Yara Welcomes E.U. Climate Law Agreement

Europe, News, News Briefs

The European Commission (E.C.), the Council and the European Parliament on April 21 agreed on the “European Climate Law,” which turned the European Union’s (E.U.) “Green Deal” cornerstone goal of achieving climate neutrality by 2050 into a binding obligation.

The formal trialogue agreement follows the E.C’s draft proposal in March 2020 for the European Climate Law regulation establishing the framework for making net zero greenhouse gas emissions by 2050 legally binding.

A stumbling block had been which climate target should be set to be achieved by 2030. The European Parliament had been in favor of a 60 percent reduction in net emissions compared with 1990. But a 55 percent reduction in net emissions target by 2030 has now been confirmed.

In June 2021, the E.C. will present concrete proposals for implementing the climate targets.

Yara International ASA, Oslo, has welcomed last week’s deal.

“Through the Farm-to-Fork Strategy, the E.U. has put the spotlight on agriculture as a key contributor to meet the climate targets now confirmed, “Yara Europe Executive Vice President Tove Andersen, said at a company first-quarter earnings presentation call on April 23.

She said the key targets set out in the E.U.’s Farm-to-Fork Strategy to make the food system more sustainable represent “a significant challenge” for both farmers and food companies.

The targets for 2030 include: a 50 percent reduction in nutrient losses; organic farming to reach 25 percent of E.U. farmland, reduction of food waste by 50 percent, and the promotion of a sustainable diet, as well as the transformation of E.U. agriculture and the food system.

However, Andersen believes Yara is perfectly positioned with its premium portfolio, its agronomic knowledge, and digital capabilities to take a leading role in this transition.

She reminded that the company’s European strategy has five focus areas.

“Yara will work with farmers, food companies, and other value chain players like insurance companies to develop ‘climate-smart’ solutions that improve both sustainability and profitability of farming,” Andersen said.

The company also plans to position itself to capture “a significant share” of the future growth segments in Europe, namely micronutrients, organic solutions, and biostimulants.

An important enabler for all the growth initiatives, Andersen reminded, is farmer connectivity. She expects a significant share of European farming to be digitally enabled within the next years.

“Developing a sustainable value chain is a key part of our strategy and we are working on a number of fronts to improve operations throughout the whole value chain to increase efficiency and reduce our environmental footprint, in line with the targets we as a company already have communicated,” said Andersen.

She reminded that nitrate-based products remain at the core of promoting climate-positive crop nutrition solutions, due to both their potential for carbon-free production and their higher efficiency and lower footprint in the field.

AdvanSix 1Q Income Triples

Ammonium Sulfate, Earnings, News, Northeast

AdvanSix, Parsippany, N.J., reported first-quarter net income of $28.1 million ($0.98 per diluted share) on sales of $376.4 million, up from the year-ago $8.6 million ($0.31 per share) and $302.7 million, respectively. EBITDA was $55 million, up from $28.6 million.

Ammonium sulfate made up just 19 percent of total sales, down from the year-ago 23 percent. The company expects improved ammonium sulfate results through the 2021 planting season, citing improving ag fundamentals, including robust planted acres, and crop prices at multi-year highs supporting higher prices. The company said it is monitoring ammonium sulfate industry supply and higher sulfur input costs.

The company said EBITDA was up primarily due to higher volume and market-based pricing, partially offset by the unfavorable impact of higher raw material costs including natural gas and sulfur, and an approximately $6.6 million unfavorable non-cash LIFO inventory reserve adjustment.

The company is budgeting $9-$11 million for turnarounds for the second quarter and a total of $25-$30 million for the year.

Ammonia

Ammonia, California, Eastern Cornbelt, India, Market Watch, Middle East, Northwestern Europe, Pacific N.W., Southeast Asia, Western Canada, Western Cornbelt

U.S. Gulf/Tampa:

Tampa ammonia prices for May rolled over from April’s $545/mt CFR. Most sources had predicted a rollover or a slight change.

Incitec Pivot’s Waggaman, La., ammonia plant was reported to have started up after its extended turnaround that was slated to end on April 15, but there were unconfirmed reports late in the week that the plant may again be having problems. It has been in turnaround since January. The company had not responded to inquiries at press time.

Some cite the long-term outage at the plant, plus the “big freeze” in mid-February and a temporary unexpected outage at Yara’s Freeport plant as major reasons for Tampa and NOLA prices going up so much so far this year.And despite improved economics, mechanical issues continue to be a problem for two of Nutrien’s plants in Trinidad.

Eastern Cornbelt:

With the preplant ammonia run pretty much over, sources quoted pricing at $615-$665/st FOB in the Eastern Cornbelt, up $15/st from last report. The low end of the range was confirmed at Kingston Mines, Ill., and Huntington, Ind., with the upper end at Lima, Ohio. Other spot offers included $625/st FOB Trilla and Wood River, Ill.; $630/st FOB Cowden, Ill., and $650/st FOB Mt. Vernon, Ind., Henderson, Ky.

One contact described spring ammonia volumes overall as “fair, nothing huge” in his trade area. He noted that fall application volumes were high, and most farmers this spring “did what they expected to do.” Others, however, said they “struggled to keep up” during the strong preplant run, with many expecting a strong sidedress season as well.

Western Cornbelt:

Sources reported some competitive ammonia offers at $585-$590/st DEL in Missouri for limited tons from Enid, Okla., as the preplant season winds down. Terminal prices continued to range from $600-$615/st FOB in the Western Cornbelt, with the low in Nebraska and the high reported at Palmyra, Mo.

California:

Anhydrous ammonia remained at $626/st DEL in California, with aqua ammonia referenced at $172/st FOB.

Pacific Northwest:

Ammonia prices were slightly higher in the Pacific Northwest, to $650-$665/st FOB, depending on location, up from a flat $650/st FOB at last report. Delivered ammonia tons ranged from $655-$680/st in the region.

Aqua ammonia in the region was quoted firmly at $155-$160/st FOB and $170/st DEL.

Western Canada:

Ammonia pricing in Western Canada remained in a broad range at C$950-$1,050/mt DEL in late April, depending on location.

Black Sea:

There are strong rumors that a sale to OCP showed a netback of $415/mt FOB, representing a significant drop in the netback price. However, sources said there is little to explain why a producer would accept such a low price.

Sources said Rossosh does have a bit of extra ammonia available for sale, but not in quantities that would lead to a panicked sale at the rumored levels. The extra ammonia comes from problems with other production lines in the complex. These issues, once resolved, will begin to take up the ammonia and once again tighten the market.

Middle East:

The SAFCO IV plant is now fully back up and running. Sources said the gradual step up in production will add some extra tons to an area that has experienced shortages in the past few weeks.

The lack of extra material has prevented any new spot deals from occurring, leaving the price in the Arab Gulf around $430/mt FOB. Sources said once the SAFCO facility is running at full capacity, some extra ammonia might be made available to a market looking for product.

India:

A tender closing on May 5 by FACT may help set new spot pricing for India. Sources said the tender is for the usual 7,500 mt to be delivered the end of May.

Northwest Europe:

The stability in pricing in Yuzhnyy and Tampa is reflected in pricing in the area. Sources said the price is holding at $520-$530/mt C&F. Traders said, however, that if the rumors of a deal at $415/mt FOB from the Black Sea are true, the price here could come down dramatically.

Sources are waiting to see what happens in the talks surrounding Baltic supplies. Going into this week, the general view was that the price would rollover in the $460s/mt FOB. However, if the Yuzhnyy price is indeed much lower, a similar drop would be expected here as well.

Southeast Asia:

Pricing in the area is showing some stability. Sources said prices into China are focused on $570/mt CFR, while Taiwan deals are reported at $580-$600/mt CFR.

First-quarter ammonia imports by Thailand were up 2.7 percent, according to Trade Data Monitor, to 95,000 mt from 93,000 mt in first-quarter 2020. March 2021 imports were put at 39,000 mt, down from 44,000 mt in March 2020.

Urea

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

U.S. Gulf:

NOLA granular urea barges saw a significant boost this week, firming to $363-$390/st FOB from the week-ago $340-$390/st FOB. The higher end of the range reflected barges that were ready to move, while the lower end represented May. A moving barge on its way upriver was reported at $405/st FOB.

Another run-up in corn prices, along with possibly higher prices in the Indian tender, were seen as reasons for the uptick.

Eastern Cornbelt:

Urea prices were steady at $410-$430/st FOB in the Eastern Cornbelt, with the low confirmed at Ottawa, Ill., and the higher end at Cincinnati, Ohio, and other Ohio River terminals.

Western Cornbelt:

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

California:

Urea pricing in California remained at $515-$520/st FOB port terminals for April tons. No current rail-DEL prices were reported in late April, with movement limited to small quantities.

Pacific Northwest:

The urea market was steady at $475/st FOB Rivergate, Ore., and $480/st FOB Aurora, Ore., with delivered tons ranging from $490-$510/st in the Pacific Northwest, depending on location.

Western Canada:

The urea market was pegged at C$655-$680/mt FOB and C$670-$690/mt DEL in Western Canada, depending on location.

India:

Soon after MMTC called its tender, rumors on the other side of the globe circulated that COVID-19 problems might force the tender to be scrapped, or at least delayed.

The global urea market moved through the week as if nothing will stop the opening of the tender documents on May 4, as planned by MMTC. The big issue facing a timely closure of the tender, however, remains the status of the COVID-19 shutdowns.

The Indian Department of Fertilizer and MMTC offices are all closed until May 3 as variants of the virus ravage the country. Sources said there are a number of unconfirmed reports that many in these two agencies and the main banks have been sidelined by the virus. No one is sure how these illnesses will affect the ability of MMTC to open and evaluate the tender offers, nor how the department and banks will be able to process the necessary award making process.

Some international traders expressed confidence that because of its long history dealing with international urea tenders, MMTC officials will be able to process the offers and awards without too much difficulty.

For traders offering into the tender, sources said they will need to secure their tons from China before the weekend. China will close on May 1-3 to celebrate International Workers Day. Office and factory workers are not expected to be back in their work units until May 5, after the tender closes.

The total tonnage expected in the tender will depend on the price. Sources gave ranges from $360/mt CFR to the current high price of $380/mt CFR. Even if the price is at or close to the $380/mt CFR level, sources said MMTC will need to take at least 1.2 million mt just to make up for the deficit from the last tender and to make sure farmers have what they need going into the season.

The tender provides for an extended shipping window. Usually, the period is about one month from the closing of the tender. This time the shipping deadline is June 28, about six weeks from the closing. The extra time could allow for more tons to be purchased. Some traders said they could see as many as 2 million mt being purchased if the right price is achieved. A more likely outcome, said sources, are purchases of 1.2-1.6 million mt.

Another major factor that could affect the final purchases is the availability of vessels. While the balance of ships in the area has returned to more normal levels, the COVID situation in India could cause some vessel owners to refuse to send their ships there. Sources said owners might be concerned that after the ship empties its urea at the Indian port and takes on another cargo, it could be quarantined for an extended time in the next port of call.

The uncertainty related to COVID and fluctuations in oil prices have impacted shipping costs. As the week opened, sources said the cost of moving 45,000-50,000 mt from China to East Coast India was $21/mt. By the end of the week that price had jumped $5/mt, with sources saying even higher prices might be expected next week.

China:

Prices strengthened following the announcement of the MMTC/India urea tender, and with news that some domestic demand remains.

Prilled urea remains priced at $335-$340/mt FOB, but with most of the business focused closer to the $340/mt mark. Granular urea moved up, with sources reporting that a small cargo of 6,000-8,000 mt was sold to a South Korean buyer at $348/mt FOB. At the same time, there were reports of a deal at $350/mt FOB for an Australian buyer.

Sources said the domestic demand is waning, but not enough to counter the upward pressure from the international market. Traders said they found themselves competing with domestic traders still looking for tons to ship inland well into June. The domestic demand is expected to ease off by July, leaving only offshore sales as the target for producers.

Traders looking at the Indian tender said they expect to see 10 to 12 vessels coming out of China. The extended shipping window might even make another several cargoes possible.

Fluctuating freight rates from China to East Coast India have made long-term planning difficult. One trader said his logistics office has had to change its estimate of freight costs almost hourly. The price moved up $5/mt this week, to $26/mt for a trip that was less than $20/mt just a few months ago.

Indonesia:

Selling tenders were called in an effort to find out where prices are. Usually in the Indonesian tenders the seller will set a reserve price. The most recent tender did not include this feature.

A Kaltim tender for 45,000 mt of granular urea closed on April 29. The highest bid came from Gavilon at $350.50/mt FOB for only 25,000 mt, sources said. At the time, traders figured Kaltim might reject this bid because it was not for the full amount. In the end, however, Gavilon won the award.

One trader said the driving factor in accepting the higher bid for fewer tons may have been that the other bids for the full 45,000 mt topped out at $331/mt FOB. By accepting the Gavilon bid, said the source, Kaltim allowed for a new price mark higher than the previous sale.

Another tender for 45,000 mt showed only bids at $333/mt and $334/mt FOB. In light of the Gavilon deal, sources said the seller scrapped this auction.Sources had described these offers as “beauty contests” because there was no guidance from the producer as to pricing.

For traders, the events were seen as efforts to determine where the market is sitting now and where it is going. The prices, with the exception of the Gavilon bid, all reflected a softer level for Indonesian product.

South Korea:

Namhae closes a tender on April 30 for 10,000 mt of granular urea. The source will most likely be China. A recent sale into South Korea of smaller tonnage showed a netback of $348/mt FOB.

Middle East:

Prices are holding steady only because of a lack of material for spot sales. The paper market is showing softer prices in the coming months, with May pegged at $342.50/mt FOB and June at $335/mt FOB.

There is talk that a trader closed a deal at $315/mt FOB, but many in the industry have discounted that rumor. If true, it would represent a significant drop in price from the most recent $340s/mt FOB level.

Some extra urea is expected in the market soon. The SAFCO IV plant has returned to production after an unscheduled technical shutdown. Sources said production will allow for some added supplies in the Arab Gulf market.

International traders are beginning to look at the new Dangote plant in Nigeria. Depending on where the company offers tons to offshore buyers, the Arab Gulf and North Africa producers could be facing new competition.

For now, the main focus of the Dangote plant seems to be split between the domestic market and Brazil. Shipments to Brazil may be problematic until the draught levels of the Nigeria port facilities can be fully explored. If tons do flow from Nigeria to Brazil, the business could disrupt sales from Qatar and Saudi Arabia, totaling about 2 million mt.

Sources reported that OMIFCO is working with its commercial arm, OQ Supply and Trading, to move 1 million mt of urea per year. The deal is a three-year offtake agreement that will make the urea available to the international market for sale around the world.

The joint venture company in Oman stopped sending urea to India at favorable rates when the two sides could not come to an agreement on terms. Following the collapse of talks, OMIFCO signed deals with international traders to move the rest of their 2020 tons. Sources reported the last of the material under those deals was offered in the RCF urea tender last month.

Thailand:

First-quarter imports of urea were down 14 percent this year, according to Trade Data Monitor, to 345,000 mt from 400,000 mt during the same period in 2020.March imports of 100,000 mt were also down from the March 2020 total of 116,000 mt.

Brazil:

Urea prices edged up in Brazil as news of the Indian tender traveled around the globe. Sources now report the Paranagua price at $355-$380/mt CFR.

The price increase comes even as buyers are arguing demand is so low that the prices should be falling. As the week closed, however, sources reported a sale of 5,000 mt of granular urea to a Brazilian buyer at $385/mt CFR for June shipment, moving the range up further.

Sources put the Rondonopolis price at $485-$510/mt FOB ex-warehouse. At the same time, however, the price at Sorriso came down to $444-$505/mt FOB ex-warehouse. The barter rates at Rondonopolis and Sorriso for 1 mt of urea is now pegged at 65 bags of corn, down from 71 bags last week.

Brazil Urea Prices
Terminal/City US$/mt FOB ex-warehouse
Week ending 4/23 Week Ending 04/30
Rondonopolis 474-520 485-510
Sorriso 480-533 444-505