AMMONIA

U.S. Gulf/Tampa: Yara was reported to have settled with Mosaic last week for May product at $550/mt DEL, down from April’s $610/mt DEL. Sources predict others will likely sign on to the same number. In the meantime, there has not been a new spot trade at other Gulf ports for some time. Sources expect that anything new would certainly follow the Tampa drop.

Eastern Cornbelt: There’s still a lot of preplant ammonia to move in the region, but suppliers remained bullish, with expectations for heavy activity when the season finally breaks in earnest. Some areas reported brisk activity last week as weather and field conditions allowed it.

The anhydrous ammonia market was tagged at $715-$735/st FOB regional terminals for spot tons. Agrium’s anhydrous ammonia postings firmed on April 22 to $725/st FOB E. Dubuque, Ill., and Niota, Ill., $730/st FOB Meredosia, Ill., and Marseilles, Ill., and $740/st FOB Cincinnati/Finney, Ohio. On a forward contract basis, one supplier was offering ammonia for May through June at $740-$750/st FOB in the region.

Western Cornbelt: Fertilizer movement continued to be hampered by the wet weather, but the lack of activity was not slowing price increases. Even with talk of growers in some locations foregoing preplant ammonia applications in favor of UAN or urea, all nitrogen prices were showing a firming trend in the wake of China’s recent decision to hike export duties on all fertilizers.

Iowa and Missouri sources tagged the spot market for anhydrous ammonia at $705-$730/st FOB last week, although one Missouri source said delivered tons from southern production points could still be had for as low as $670/st. Forward contract ammonia for May through June was being referenced at $730/st FOB in Nebraska and $735/st in Iowa.

Northern Plains: Some areas of the region experienced brisk preplant ammonia movement during the first weeks of the month, but sources in some areas of Minnesota said they expect growers to start considering a switch from ammonia to UAN or urea due to wet conditions and continued fieldwork delays.

The anhydrous ammonia market was quoted at $725-$735/st FOB in Minnesota for spot market tons, with reports of fall tons trading for as high as $775/st FOB. One supplier was offering forward contract ammonia for the May through June period at $735-$755/st FOB in the region, with the low in Minnesota and the upper end out of North Dakota shipping points.

Delivered ammonia in North Dakota was pegged in a broad range at $800-$830/st, depending on supplier, with brisk demand reported. Agrium’s anhydrous ammonia postings in the Leal, Velva, Grand Forks, and Beulah sales area in North Dakota moved on April 17 to $780/st FOB and $800/st DEL.

Eastern Canada: Anhydrous ammonia remained at $760-$770/mt FOB to the dealer in Eastern Canada.

Black Sea: Reports that Yara concluded with Mosaic at $550/mt CFR led Asian traders to peg the Yuzhnyy price at $480/mt FOB. While these traders say the sale marks a softening of the ammonia market, they are not ready to say it is in a freefall. Some cargoes were reportedly picked up just above the $480/mt level, but, said one source, the sales were most likely for top-off or otherwise small quantities.

With European and American demand remaining strong, sources say the decline in prices will be gradual and small. One observer noted the industry has gone past the days of dramatic falls and dizzying increases.

Even the skyrocketing urea market appears to have little impact on the Yuzhnyy ammonia market. One source noted that the urea producers are already running at full capacity, leaving little room for additional production that could take ammonia away from the marketplace.

Sources now say the $480/mt FOB estimated rate from the Yara deal is most likely the top of the market. Observers put the range at $450-$480/mt FOB.

Middle East: Unlike their Black Sea counterparts, the Middle East producers are sitting pretty with no reason to lower prices. Sources in Asia expect to see prices from this region begin to move up as demand grows.

Indian buyers are stepping in at a much faster rate now that the DAP producers have all the other components lined up. A number of vessels reportedly lined up in various Middle East ports last week to pick up material bound for India.

At the same time, Asian buyers keep asking for more ammonia. Some are using clauses in their contracts to demand and get extra material with each shipment. Others without the options are pleading for more ammonia.

For now, the price remains fixed in the low $500s/mt FOB, with a full expectation that it will soon take off as Indian demand increases.

Asia: Reportedly, Taiwanese buyers are asking for advances on their contracted tons and any extra quantities suppliers can squeeze out of the plants. Sources say the downstream demand for ammonia is matched only by the strength of the markets for the final products.

Suppliers to Taiwan are running about cutting as many swap deals as possible to keep their customers happy.

Mitco in Malaysia is telling traders and customers not to expect any additional tons to be added to contract tons. The company is not having production problems – it’s just that demand is so strong that every ounce of ammonia is being taken under the terms of the contracts Mitco has.

More Japanese buyers are turning to imported material. Shortages are popping up because some domestic producers were late coming back online after scheduled turnarounds.

One source said the gap in supply caused by the delays in coming back to full production is being filled with swap deals. However, the situation is so tight that the suppliers just seem to be passing the gap around rather than getting ahead of the situation.

Japanese producers are also slowly raising their prices to match international levels. Sources say within a month or so the lower-priced domestic material destined for domestic buyers will soon be at parity with imported ammonia.

Needless to say, producers are complaining. But they understand they have little recourse but to accept the higher levels.

UREA

U.S. Gulf: Granular prices soared last week, with most sources citing $510/st FOB being done at midweek. Offers for the next trade were reported within the $515-$525/st FOB range. The only question was where the week started.

Prills were reportedly trying to keep pace with granular. However, sources said there were very few prill barges around, as most were liquidated earlier when an oversupply of imports was causing the prill price to crash.

Eastern Cornbelt: Granular urea was tagged at $515-$545/st FOB, up significantly from last report, with the low end reported by both Illinois and Ohio sources out of spot river locations.

Western Cornbelt: Granular urea pricing had firmed to $515-$525/st FOB terminals to the dealer by midweek, and postings were expected to crowd the $550/st FOB mark before the week was out. Koch raised its Enid, Okla., reference price on April 23 to $545/st, and one supplier was offering forward contract urea for May at $563/st FOB Inola, Okla.

Northern Plains: Granular urea pricing was ratcheting up steadily throughout the week. Some sources said spot tons could be had out of the Twin Cities market for $495/st FOB early in the week, but the market had reportedly firmed to $505/st FOB by Tuesday, with reference prices in the $525-$550/st FOB range by midweek. Agrium’s granular urea postings included $520/st FOB Marion, S.D., $550/st FOB Shakopee, Minn., and North Dakota terminals at Alton, Carrington, Colfax, Marion, and Scranton, and $555/st rail-DEL in Minnesota, Wisconsin, and the Dakotas.

Forward contract urea was on the table for May at $565/st FOB Pine Bend, Minn., and $580/st DEL in North Dakota and northern Minnesota, with a $5-10/st increase for June.

Northeast: Sources reported firming urea prices in the wake of the surging barge market, but warehouse values were playing catch-up. “Holy crap!” was the response from one when asked about urea pricing on Wednesday. As of April 20 urea could still reportedly be had for $492/st FOB Philadelphia, Pa., but $515/st FOB was the price the next day. Sources tagged the Baltimore, Md., reference price at a firm $550-$555/st FOB at midweek. A Pennsylvania source also reported a $528/st DEL price for urea as of Wednesday morning.

Eastern Canada: Granular urea in Eastern Canada was
reported at $609-$610/mt FOB, but several contacts said a
near-term increase was likely.

Western U.S.: Yara took its granular urea price up to $530/st FOB Stockton, Calif., on April 21. Simplot raised its urea postings by $30/st on April 25 to $580/st DEL in Idaho, Utah, Oregon, and Washington.

Black Sea: It didn’t take long. Once the industry got over the shock of China’s dramatic withdrawal from the international urea market, producers in the Black Sea rapidly started quoting price increases that began to look like the figures on a gasoline pump.

At the beginning of the week $520/mt FOB was confirmed. By mid-week, $540-$550/mt FOB was done. And by the end of the week, $560/mt FOB was reported but not confirmed.

A sale of $545-$550/mt FOB from the Baltic ports for three 4,000 mt cargoes confirmed for many the $560/mt FOB rumors.

For producers there are no incentives to hold back on increasing their prices.

India is expected in as soon as this week. Sources report some IPL buyers were out last week looking to secure tons in the area, as well as from the Middle East.

With China out of the market, the only places India can go for substantial quantities are Yuzhnyy and the Middle East.

One trader said the market might see a pause in the increase if India holds off a week or so, but once buying begins, the price will skyrocket.

Sources say Indian demand for this year will be so great that IPL and MMTC will not be able to sit out much longer than a week. If they could hold off until the IFA meeting beginning May 19 in Vienna, one source said, the industry might see a drop in prices. However, once the buying begins the market will once again take off for the stratosphere.

As last week closed traders and end users were firm in their belief that the market sat at $550-$560/mt FOB with plenty of room to grow. One trader commented that the price could easily open the week at $570/mt FOB – and keep going.

Middle East: Producers are now asking $575-$580/mt FOB for prills and granular. Sources say the pricing idea comes from the producers looking at the Yuzhnyy price and taking shipping advantages to India into account.

One Asian trader noted that $575/mt FOB was done into Thailand.

The bottom line for the producers is that they remain in a perfect spot to take advantage of China’s withdrawal from the international urea market.

The area producers have a shorter steaming time to India and can offer a variety of vessel sizes for delivery. The ability to send large and medium-sized cargoes means the Middle East producers can ship to just about any port in India.

The Yuzhnyy-supplied material will have to go to only one or two ports because of the size of the vessels.

Reportedly, officials from Bangladesh were in the area last week looking for a government-to-government deal similar to the one between Pakistan and Saudi Arabia.

Sources report Bangladesh desperately needs material, but lacks the currency or wherewithal to purchase the product on the open market.

Tenders held by BCIC last year should have yielded close to 3 million mt of imports. The government agency only imported less than 1 million mt. Some say only 300,000 mt at best.

Reportedly, the Bangladeshi delegation went home empty handed.

Producers in the area report they are sold out through May and are not able to accommodate any new orders.

India: Industry watchers say IPL agents have been moving among traders and suppliers looking to secure tons before calling a tender. No one could point to any concluded business last week. One Asian source says the IPL buyers went
home without a deal.

The pressure is on IPL and MMTC to get the tons the country needs without bankrupting the national treasury.

A number of industry analysts say India will need to import 6-6.5 million mt this year. The agriculture minister estimates the country will need imports of 8 million mt.

One trader wondered why the minister made this declaration at a time when the market was already aglow with price-rise fever. Had the minister low-balled the Indian needs to 4-5 million mt, the trader said, the market might have taken a pause to double-check the numbers.

As it is now, everyone is expecting an Indian buyer, most likely IPL, to step forward this week – or even possibly over the weekend – to call an open-ended tender.

If IPL can hold off buying a week, sources say the market might take a deep breath and hold steady.

Once the tender is called, however, prices will go up.

If IPL and MMTC can hold off until the IFA conference in Vienna May 19, sources say some price softening might even occur. The market could experience a slight dip in prices – and then a massive jump.

Either way, say sources, by the end of May urea prices will be back in record high territory, with nothing to slow them down until October, when China is expected to lower its export duty and let urea once again flow out of the country.

Sources report the STC tender of last month was allowed to go to a quiet and unnoticed death. Sources say no one extended validity dates and no one from STC bothered to make the rounds to offering companies to try to secure any tons.

A follow-up tender is expected once the buyers figure out what to do under the current international situation.

China: Pro-Tibet demonstrators along the Olympic torch routes are not the only ones upset with Beijing. Buyers for April and early May tons were suddenly left with only two options for material – the Black Sea or the Middle East. Cargoes from Indonesia are not expected to start moving until mid-May, and even then only in small quantities.

The domestic price in China is coming down, as the central planners had hoped. Sources report the domestic price dropped 5 percent last week. Further declines in prices are expected.

One Asian trader speculated that if the price continues to drop and the international price continues to rise, eventually the Chinese product would once again be competitive on a global scale.

He noted how quickly the international market absorbed the 30 percent duty January 1, and then the 35 percent export duty February 1. If the world price keeps climbing, the 135 percent duty might be similarly swallowed.

Others think this is more dreaming than reality.

Even as Beijing announced the increase in the export duty, several in the industry thought it might be part of a move to weed out the smaller and less efficient urea producers.

If the domestic price drops too low for some of the producers, they will either have to cut back production or shut down. Some might be snapped up by more efficient producers who have the necessary funds to modernize the plants. Others will just be closed until they can once again operate without subsidies.

If some plants do indeed cut back, said one source, the slide in the domestic price will halt before it can become competitive in the international market.

Indonesia: The government moved up its timetable to sell urea.

PIM is closing a selling tender April 30 for 3 cargoes of 20,000 mt each.

With China out of the international picture, the bidding could go high. The final destination could also be anywhere. Sources expect the PIM tons to be offered to India, but a number of other regional countries are also in the market for small cargoes.

Bangladesh: Asian sources figure the government will put pressure on Kafco to limit its exports this year. Even though the country is largely a prill market and Kafco produces granular urea, sources say the inability to secure “reasonably” priced prills on the world market may force farmers to reconsider their biases against granular.

Reportedly, government representatives were in the Middle East last week looking for a government-to-government deal similar to the one struck between Pakistan and Saudi Arabia. Sources report the agents returned home empty handed.

NITROGEN SOLUTIONS

U.S. Gulf: Prices continued to move up last week, with players calling the market within the $330-$350/st FOB range ($10.31-$10.94.unit).

Eastern Cornbelt: UAN pricing was on the rise, with dealers tagging the spot market in a broad range at $11.45-$12.14/unit FOB regional terminals last week. The upper end was reported in Indiana, where sources continued to talk of heavy interest in fall tons as well. Forward contract UAN-32 for May ranged from $11.80-$12.28/unit FOB terminals in the region. One source said dealer pricing in the Wisconsin market had firmed to $12.30/unit FOB for spot tons.

Western Cornbelt: UAN was quoted at $11.25-$11.75/unit FOB in the region, with the upper end reported in Iowa on the spot market. The lower number was reported in Missouri, but sources said an increase was imminent. Sources continued to report lots of interest in summer fill UAN.

Northern Plains: The UAN market was quoted at $11.90-$12.10/unit FOB Minnesota terminals to the dealer for spot market tons, with one supplier offering forward contract UAN-32 for May at the $389/st ($12.16/unit) mark FOB Pine Bend. In North Dakota, UAN-28 remained at $350-$355/st ($12.50-$12.68/unit) DEL.

Northeast: Urea and UAN solution were moving out the door in the region last week, and the UAN-30 market also had some upside potential based on replacement costs. Sources tagged the UAN-30 market at $320-$325/st ($10.67-$10.83/unit) FOB Baltimore and Philadelphia, with reports that dealer reference prices had firmed to the $335/st ($11.17/unit) FOB level from some suppliers. A Pennsylvania dealer quoted delivered UAN30 at the $348/st ($11.60/unit) mark at midweek, which he said netted back to $320/st ($10.67/unit) FOB Baltimore.

Out of terminals in upstate New York, the UAN market was reportedly referenced at $12.23-$12.25/unit FOB last week.

Agrium’s UAN postings moved on April 14 to $10.55/unit FOB Chesapeake, Va., $10.60/unit FOB Bainbridge, Ga., and Wilmington, N.C., and $10.70/unit FOB Baltimore. Agrium’s UAN S 28 percent solution postings moved on April 14 to $276.59/st FOB Chesapeake, and $278.15/st FOB Bainbridge and Wilmington. UAN S 25 percent postings moved to $318.72/st FOB Bainbridge, and UAN S 24 percent postings moved on that date to $294.65/st FOB Chesapeake.

Eastern Canada: UAN was reported in a broad range at $13.69-$14.64/unit FOB terminals in the region, depending on location and product availability. One Ontario source pegged the UAN-28 market in his location at $385-$389/mt ($13.75-$13.89/unit) FOB last week.

AMMONIUM NITRATE

U.S. Gulf: Unlike the other nitrogens, AN barges continue to remain quiet. Most say it is too late in the season for them to see much action right now. Instead, any price hikes are expected to be inland, where product is already in place.

Western Cornbelt: Ammonium nitrate remained at $385-$395/st FOB in the region. Pricing FOB Yazoo City, Miss., was steady at $375/st.

Eastern Canada: The ammonium nitrate market remained firm at $505-$508/mt FOB in the region. One source pegged the CAN-27 market in his location at $385/mt FOB last week.

AMMONIUM SULFATE

Eastern Cornbelt: Granular ammonium sulfate was quoted at $310-$320/st FOB in the region.

Western Cornbelt: Granular ammonium sulfate pricing remained in a broad range at $305-$320/st FOB in the region.

Northern Plains: Granular ammonium sulfate was up from last report at $315-$325/st FOB in Minnesota. Dakota Gasification was referenced at $350/st DEL in North Dakota, $355/st DEL in South Dakota, $360/st DEL in Minnesota, and $408/st DEL in Manitoba and Saskatchewan.

Northeast: Granular ammonium sulfate was tagged at $322-$335/st FOB in the region. Delivered ammonium sulfate was also quoted at the $335/st level in southern Pennsylvania last week.

Eastern Canada: Granular ammonium sulfate was quoted at $365-$395/mt FOB in the region last week, up slightly from last report.

PHOSPHATES

Central Florida: After getting slapped with a $200/lt hike in sulfur prices the previous week, the phosphate industry got a small break in the ammonia price, which dropped from $610/mt to $550/mt. However, the big problem for Central Florida phosphate producers remained sulfur, and how to get more. The shortage has forced a slight curtailment of production of both DAP and MAP, but especially MAP, which needs about 13 percent more sulfur to produce than DAP. As a result, both Mosaic and CF were charging a premium for MAP – Mosaic wanted an extra $15/st, while CF was charging an additional $75/st over DAP, which was a big jump from the $40/st FOB premium it sought only a week earlier.

Prompt orders were virtually nonexistent in Central Florida last week, but forward sales into June were continuing. CF was said to have little or nothing to sell on a prompt basis. Mosaic’s forward sales for June were made at $1,070/st FOB for DAP and $1,085/st FOB for MAP. The biggest problem the domestic industry was facing last week was wet weather. Some areas have improved, but only in spots, while most remain too wet for farmers to work. Many areas of the country have still not been able to put in their crops. Unlike most of the past several years, a dry spell would help.

The Central Florida DAP price range last week remained at $980-$1,000/st FOB. PotashCorp’s Central Florida reference price stayed at $1,050/st FOB for DAP. Mosaic’s asking price was $1,070/st FOB for DAP and $1,085/st FOB for MAP. CF’s price was $1,050/st FOB for DAP and $1,125/st FOB for MAP, which continued to be scarce. In Texas, Agrifos’s truck price was $1,050/st FOB for trucks and $1,045/st FOB for rail shipments.

U.S. Gulf: Two factors have been holding down prices on the river system for the past few weeks – wet weather in much of the Midwest and the fast current on the Arkansas River, which has kept almost all barge traffic from moving north. Rosedale was full last week as barges waited for the river to slow, and others were being housed at New Orleans for the same reason. However, not a lot of prompt barges were available due to weather conditions. Conditions on the Arkansas were to be reviewed late last week to determine when barges might be able to start moving again. Terminals on the river were running out of most fertilizers, and what was left was being dedicated to prepaid customers for the most part.

Western Iowa was in the process of planting its corn crop, but the northern and eastern sections of the state were still too wet. Corn was going in the ground in Ohio last week, and planting in other areas was spotty at best. Corn was also being planted in the irrigated regions of the Texas Panhandle. In Oklahoma, which depends on the Arkansas River for supply, conditions were too wet and time was running out for wheat. However, the rice crop could replace wheat in some cases. That state has had disastrous wheat crops the past two years, and farmers have less money to spend on phosphates. However, since there have been problems, less phosphate may be needed, because much of what was used during the past two years was still in the ground.

Despite the bad weather, farmers should be able to get their crops in the ground in time if they can catch even a short break. “Farmers are antsy, but with the equipment farmers have today, they can get a lot more done in a single day,” one source noted.

More of Mississippi Phosphates’s production was said to be going to the export market, which can easily take up the slack from the slowing NOLA business. Considering the price of phosphate rock from North Africa and the high prices of sulfur and ammonia, the company needs a higher return than other producers.

Although they still trail barge prices, warehouse prices were moving up. The lowest were in Oklahoma, which were running between $985/st FOB and $1,000/st FOB, while the upper Mississippi and Illinois rivers were in the $1,030-$1,040/st FOB range.

NOLA DAP barge sales last week were made between $985/st FOB early and $995/st FOB, while MAP barges were scarce and the asking prices over $1,000/st FOB, but no buys were made. The NOLA DAP barge price range the previous week was $980-$1,060/st FOB. Mosaic’s asking price for forward sales from June through August was $1,090/st FOB for DAP and $1,105/st FOB for MAP. CF was seeking $1,070/st FOB for DAP and $1,145/st FOB for MAP for prompt deliveries.

Eastern Cornbelt: Warehouse prices for phosphates continued to play catch-up to current replacement costs, but higher numbers were becoming more common. Sources reported the common dealer price out of Illinois and upper Mississippi river warehouses at $1,025-$1,040/st FOB for DAP, with MAP prices ranging widely from $15-$75/st higher than DAP. An Indiana source quoted spot market MAP as high as $1,125/st FOB last week. One supplier was posting forward contract DAP for May through September at $1,104/st FOB Peoria, Ill., and $1,107/st FOB Cincinnati.

Western Cornbelt: DAP and MAP were now generally quoted in the $1,000-$1,025/st FOB range out of regional warehouses to the dealer. Sources reported warehouse pricing out of Arkansas River warehouses in Oklahoma at the $985/st FOB level last week. Forward contract reference prices for May through September included DAP at $1,104/st FOB St. Louis, Mo., and $1,107/st FOB Inola, Okla., with MAP as high as $1,182/st FOB Inola for the same period.

10-34-0 remained in extremely tight supply, if not completely unavailable on the sport market in the region. Sources reported the last spot business firmly in the $850-$875/st FOB range for very limited tons.

Agrium’s postings for super phosphoric acid and merchant grade acid will firm on May 1 to $1,320/st rail-DEL in Iowa, Missouri, Nebraska, Colorado, Kansas, New Mexico, Oklahoma, and Texas. Simplot announced that it is going to $13.10/unit DEL for SPA and MGA in the Midwest sales area.

Northern Plains: DAP and MAP were quoted at $1,100-$1,110/st FOB the Twin Cities for any available spot tons. On a forward contract basis for May through September, one supplier was posted at $1,110/st for DAP and $1,185/st for MAP FOB Pine Bend. 10-34-0 remained in scarce supply in the region, with most sources pegging the market firmly in the $825-$850/st FOB range for any available tons, “if you can find it.”

Agrium’s postings for super phosphoric acid and merchant grade acid will firm on May 1 to $1,320/st rail-DEL in Minnesota and the Dakotas.

Northeast: Phosphates remained in short supply, and prices covered such a wide range that one source recommended “throwing a dart.” Some talked of a $100/st pricing difference from one supplier to another, and others reported retail pricing to the farmers still taking place for as low as $779/st FOB at some locations.

MAP to the dealer was quoted at $942-$1,010/st FOB regional warehouses, with DAP in roughly the same range provided spot tons could be found on the open market. Sources reported reference prices as high as $1,040/st FOB some locations last week. One dealer also reported locking in some spot MAP tons at midweek for $997/st DEL.

10-34-0 was reported in a very broad range at $560-$710/st FOB, with the low for spot tons in the Mid-Atlantic region and the upper numbers out of terminals in upstate New York.

Eastern Canada: The DAP market was quoted last week at $1,200-$1,225/mt FOB in Ontario, with MAP reported in a wider range at $1,200-$1,250/mt FOB. One Ontario dealer pegged the TSP market at a firm $1,000/mt FOB last week. Several sources said many dealers were still offering retail phosphate pricing that didn’t accurately reflect current replacement costs.

In Western Canada, sources said the MAP market moved on April 22 to $1,335-$1,370/mt DEL, up from the prior week’s $1,265-$1,300/mt DEL.

Western U.S.: Simplot moved its MAP and DAP prices in the Western U.S. up $100/st on April 19. New postings in the California market include DAP at $1,175/st FOB or DEL and MAP at $1,160/st FOB or DEL. In the Pacific Northwest, DAP postings moved to $1,170/st rail-DEL and MAP to $1,155/st rail-DEL from Pocatello, Idaho. For Idaho and Utah, those numbers moved on April 19 to $1,150/st DEL for MAP and $1,165/st DEL for DAP. In western and central Montana, new postings include $1,145/st DEL for MAP and $1,160/st DEL for DAP. Eastern Montana postings moved to $1,160/st DEL for MAP and $1,175/st for DAP.

Simplot’s 16-20-0 postings moved up $40/st on April 19 to $615/st rail-DEL in the Pacific Northwest, including Idaho, Utah, and Montana; $615/st FOB Lathrop, Calif.; and $622/st FOB other warehouses in California. The company’s 0-45-0 TSP postings firmed $85/st on April 19 to $880/st FOB Pocatello in the Pacific Northwest region, and 925/st FOB or rail-DEL in California. Simplot’s 10-34-0 postings moved up $51/st on April 25 to $536/st FOB Pocatello.

Simplot also announced new postings for phosphoric acid, effective May 1. Instead of the originally scheduled dime/unit increase, reference prices for super phosphoric acid (SPA) and merchant grade acid (MGA) will move up $1.50/unit to $13.20/unit rail-DEL from Pocatello to points within the company’s western sales area. Simplot’s MGA posting FOB Lathrop and El Centro, Calif., will firm on May 1 to $13.40/unit.

Agrium’s MAP postings moved on April 22 to $1,145/st DEL in Montana and Wyoming; $1,150/st DEL in southern Idaho, Utah, Nevada, and Oregon’s Malheur County; $1,150/st FOB and $1,155/st DEL in Washington, northern Idaho, and Oregon excluding Malheur County; and $1,160/st FOB or rail-DEL in California and Arizona.

Agrium’s postings for SPA and MGA will move on May 1 to $1,320/st rail-DEL in Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Wyoming.

U.S. Export: Both PhosChem and a trader made export sales last week, and all were into Latin America. PhosChem sold 25,000 mt of DAP at $1,215/mt FOB and 15,000 mt of MAP at $1,235/mt FOB. The destinations were Central America and Mexico. A trader did somewhat better with a smaller order into Latin America of 6,000 mt of DAP at a price between $1,220/mt FOB and $1,223/mt FOB, depending on the final freight rate negotiated. Freight rates have risen sharply recently and the freight to India, which was still in the market, was running $100-$110/mt. PhosChem turned down an offer from India, which was offering only $1,300/mt delivered, due to the high cost of freight.

Export phosphate prices were likely to continue climbing as a result of the 135 percent export tariff on phosphate, which went into effect on April 20. That could pull between 1 million and 1.5 million mt from the market.

The export price range last week for DAP was $1,215-$1,223/mt FOB, and $1,235/mt FOB for MAP. Expect prices to increase with the next round of sales.

POTASH

Eastern Cornbelt: Potash was quoted in a very broad range at $545-$615/st FOB regional warehouses to the dealer, with the low end quoted for a confirmed spot sale last week.

Western Cornbelt: Potash pricing on the secondary market was quoted at $595-$615/st FOB regional warehouses to the dealer, with the upper level reported in Iowa.

Northern Plains: Potash pricing covered a wide range in the region. Out of regional warehouses, sources pegged the market at $570-$675/st FOB for very limited tons. The mine price FOB Saskatchewan remained at $488-$493/st FOB, depending on grade, for strictly allocated tons during the current shipping period. PCS Sales announced that it is raising terminal potash prices for all grades by $150-$175/st for all shipments between June 1 and Aug. 31.

Agrium issued new potash prices for the July 1 forward shipping period. Postings for 60 percent red premium potash for the July 1 forward shipping period include $623/st FOB Shakopee, $616/st rail-DEL in northern Minnesota and North Dakota, and $618/st rail-DEL in southern Minnesota and South Dakota. The company’s potash postings FOB Vade, Saskatchewan, include $585/st for standard grade and $590/st for red premium for July 1 forward.

Northeast: Potash was also quoted in a very broad range at $545-$650/st FOB warehouses to the dealer. One Pennsylvania source quoted delivered potash at midweek at $531-$549/st, depending on grade. Agrium’s potash postings for the July 1 forward shipping period include 60 percent red premium potash at $647/st FOB Lewistown, Pa., and $642/st rail-DEL in the Northeast region.

Agrium’s postings for granular K-Mag firmed on April 14 to $283/st FOB Bainbridge and Tifton, Ga., and $293/st FOB Wilmington

Eastern Canada: Potash pricing out of the regional warehouse system covered a wide range. One source tagged the dealer market in his area at $590-$600/mt FOB for any available tons, while another said spot tons could still be had for $491-$496/mt FOB, at least “for the moment.” Still another quoted the market at $630/mt FOB for June. The mine price FOB Sussex, New Brunswick, remained at March pricing levels of $440-$445/mt. An updated pricing schedule for the June 1 forward shipping period was not yet available.

Sulfate of potash was in extremely tight supply, with the only spot price reported at $575/mt FOB in southern Ontario.

Brazil: Canpotex has announced that effective June 1, delivered prices to Brazil will rise to $750/mt for granular and $725/mt for standard.

BPC says that effective July 1, prices to Brazil will move to $1,000-$1,010/mt DEL.

Southeast Asia: Canpotex has announced that effective June 1, delivered prices to Southeast Asia will rise to $750/mt for granular and $725/mt for standard.

Effective July 1, BPC is moving its price to the region to $1,000/mt DEL.

SULFUR

Tampa: After settling on an increase for second-quarter sulfur prices $200/lt above the previous quarter, the sulfur industry was sitting back and relaxing last week. Odds were that another huge increase will be sought for the third quarter. Prices in the Middle East moved to more than $700/mt FOB last week after Iran agreed to do a deal with India at $708/mt FOB, and the delivered price will be about $750/mt.

In what may be a break for the world sulfur market, China put a moratorium on receiving new sulfur shipments from May until the end of the Summer Olympics, apparently to help ease air pollution for the athletes, some of whom have decided not to participate due to the poor air quality in Beijing.

Refineries in the U. S. were pumping out more fuel and more sulfur last week, although still well below what is necessary to supply either drivers or sulfur customers. Small industrial buyers were being hit the hardest by the sulfur shortage, although phosphate producers have cut back on some production. BP’s Texas City plant was improving, while Chevron has had problems at Pascagoula, as have Marathon in Kentucky and ExxonMobil at Beaumont. Alon Energy USA shut down and restarted its No. 2 sulfur recovery unit on April 19. The refinery has partially restored production of fuel after a fire in mid-February. Refineries such as Valero’s, which do not own their own oil reserves, were working on close margins due to the high cost of oil, which was near $120 a barrel last week.

The hurricane season begins June 1, and although no storms have posed a problem in the Gulf of Mexico the past two years, there were no guarantees for this season. Hurricane prognosticators were not optimistic of a repeat of good luck. A single storm would cause massive problems in Central Florida, where sulfur storage facilities were near the bottom.