Sources report urea prices in China are now being quoted at $335-$340/mt FOB, down from $360-$370/mt FOB just last week. The drop comes as production steps up in China, currently at 160,000 mt/day and as reserves of nearly 10 million mt are being released for sale. Sources said, however, strong demand in the United States, Australia, Thailand and Brazil and reduced output in Southeast Asia could lead to a price rebound. The price fluctuation also takes place as India is preparing to call its first urea tender of the year, which could also lead to further changes in pricing ideas. One trader said the market could face a price bloodbath if the tender is called this week.
All posts by Steve Seay
Gavilon’s Harlander to Retire
Gavilon Fertilizer, Savannah, on March 9 announced that Brian Harlander, President, has decided to retire after more than 48 years in the ag industry. He will continue to serve Gavilon Fertilizer through a consulting and advisory role. As decisions are finalized, a subsequent announcement will be made to introduce the new leadership team.
NOLA Urea Tops $400/st
New Orleans granular urea barge trades have topped the $400/st FOB mark in early week trading, according to industry sources, who reported multiple transactions. Major players have argued that supplies are tight and that there have not been enough imports to serve the expected spring season demand. The week-ago range was $357-$370/st FOB.
K+S Receives Audit Opinion
Deloitte issued an unqualified audit opinion on the K+S 2020 consolidated financial statements, according to a K+S release, cited by Bloomberg. The impairment loss on assets in the Europe+ operating unit now amounts to EU1.86 billion in the consolidated financial statements as of Dec. 31, 2020, around EU140 million lower than previously expected, according to the report. However, the unqualified audit opinion confirms that the impairment loss should not have been recognized earlier.
Mosaic, Sound Agriculture Partner on New Product
The Mosaic Co., Tampa, and Sound Agriculture, Emeryville, Calif., announced March 9 they have formed a strategic partnership to bring a revolutionary nutrient efficiency product to market to boost yields across major row crops and improve soil health. The companies will collaborate on the development and distribution of a proprietary mix of Sound Agriculture’s bio-inspired chemistry and key micronutrients. The partners said early data indicates the combination has potential to be a best-in-class product within the broader nutrient efficiency space.
OCI Acts on NH3, Methanol as Fuel
OCI NV, Amsterdam, said March 5 that it has signed agreements advancing the use of ammonia and methanol as fuel for vessels. OCI produces both products. The agreements are with MAN Energy Solutions, Hartmann Gas Carriers and Eastern Pacific Shipping.
Nutrien Cuts Jobs in Saskatchewan
Nutrien Ltd. has cut jobs in Saskatchewan, according to the Regina Leader-Post. In the statement to the newspaper, Potash CEO Ken Seitz said the company “identified a need to drive efficiencies in (its) finance department to remain competitive,” and the changes will affect other operations in North America. He put the number of cuts as under 50.
Chinese Increase Urea Supply Along with Export Potential
Natural gas price pressures on China’s urea producers are easing from highs induced by the recent cold snap, while operating rates are recovering on increased LNG supply and are at a five-year high in March at 75.7 percent, according to Green Markets Director of Research Alexis Maxwell. She said China’s port inventory is rising in response to higher rates, which portends more exports from the world’s marginal producer.
Ammonia Prices Continue to Shoot Up
New Orleans ammonia barge trades have been reported at $475/st FOB, up $115/st FOB or 32 percent, from the last done $360/st FOB. As recently reported, March vessel imports to Tampa moved to $445/mt CFR, up from February’s $330/mt.
FBN Buys Pro Ag
Farmers Business Network reports that it has acquired Canada-based Professional Ag Distribution Inc. (Pro Ag), a specialty fertilizer manufacturer and retailer for the horticulture and specialty markets.