All posts by traceybg@gmail.com

UREA

Market Watch, Urea

U.S. Gulf: Compared to the volatile market so far this spring season, most called this week quiet. While many quoted the market at $700/st FOB or less, others said it had traded as high as $715-$720/st FOB.

Prills were called $650-$680/st FOB, though there was one report that they might be higher, bumping into granular.

Eastern Cornbelt: The granular urea market was quoted at $740-$760/st FOB most regional terminals for prompt tons, with the low reported in the Illinois market. An Ohio contact quoted the dealer market solidly at the $750/st FOB level last week.

Western Cornbelt: Sources pegged the granular urea market at $740-$750/st FOB regional terminals last week. Urea pricing out of the Catoosa, Okla., market was reported at $720-$730/st FOB.

California: Sources tagged the granular urea market in California at $655-$665/st FOB where available, with the upper end reflecting new reference prices that were just taking effect from some suppliers. Although there were reports of some deals still being done under that range, most said those were deals that were booked earlier. Delivered urea postings remained in the $685-$705/st range in the region, depending on location.

Pacific Northwest: The granular urea market was quoted at $750-$785/st DEL, with dealer reference prices reported in the $790-$805/st DEL range. Some sources maintained that tons could still be pulled at lower numbers, but others discounted those reports based on very tight inventories. No tons were available from Simplot on an FOB basis out of Rivergate, Ore.

Western Canada: Granular urea pricing had reportedly firmed to $870-$895/mt DEL in Western Canada, up a full $120/mt from early-April pricing levels. The lower end of the range was reported in Manitoba and Saskatchewan, with the higher numbers in Alberta and British Columbia.

Pakistan: Sources report a number of freight inquiries for urea loadings in Iran to be discharged in Pakistan.

The move was expected following reports that TCP – on government orders – was looking for ways to engage in barter swaps involving urea with Iran. The reported trade of goods includes sugar and wheat going to Iran, and urea being sent to Pakistan.

One trader noted that the use of a barter deal may allow Pakistan to avoid any criticism from the U.S. Because the deal is product for product, no banking arrangements are required.

Even as the barter deal appears to be going through, TCP continues to have the tender it called April 19 posted on its website. The announcement does not limit the origin of the material.

Industry sources thought the tender might be recalled after news that Sabic and the Japanese development assistance agency were combining to provide funds for close to 300,000 mt.

One trader speculated that the tender may be the vehicle to set the price for the urea purchased under the assistance programs.

The tender will close in the waning days of the upcoming IFA global conference in Doha. Industry players will be watching closely to see if TCP postpones the closing date to allow time for everyone to get back home and prepare their offers.

In the meantime, the domestic urea producers continue to oppose the importation of the 300,000 mt. The latest volley came from Engro, with the company calling the import plan “irrational.” It claims there are sufficient stockpiles in the country to handle the current application season.

Engro Vice President and CFO Ruhail Mohammad told analysts April 30 that the country is carrying its highest ever inventory level of 1 million mt of urea, and to import at this stage would create a glut in the market. Engro proposed to supply urea

NITROGEN SOLUTIONS

Market Watch, UAN

U.S. Gulf: UAN barge trades last week were put within the $390-$400/st FOB range ($12.19-$12.50/unit).

Eastern Cornbelt: Sources pegged the UAN-32 market at $432-$445/st ($13.50-$13.91/unit) FOB most regional terminals, with reference prices remaining as high as $14.30/unit FOB in the Ohio market.

Western Cornbelt: UAN-32 continued to be quoted in the $430-$450/st ($13.44-$14.06/unit) range FOB regional warehouses. Movement in the Western Cornbelt has slowed, due to wet weather in some locations and the lull between corn and soybean planting.

“It’s not at the feverish pace it was two or three weeks ago,” said one contact. With 75 percent of the corn planted and 37 percent emerged in Missouri by the end of April, sources said growers were starting to sidedress in some parts of the state, but movement “hasn’t hit full stride yet,” according to one source. He added that movement on rice should also be rolling within the week in his location.

California: Sources said UAN-32 was still available on a spot basis in California at $395-$410/st ($12.34-$12.81/unit) FOB, but reference prices were moving up, with one supplier reposting last week at $415-$425/st ($12.97-$13.28/unit) FOB for new sales, depending on location. No rail-delivered spot quotes were available from sources in early May.

On the retail side, however, one source said some suppliers were still offering UAN sales to growers at even lower prices – some as low as $360-$395/st ($11.25-$12.34/unit) FOB – that do not reflect current replacement costs. Those low retail prices will probably dry up soon.

Pacific Northwest: UAN-32 was in very tight supply in the region, and spot pricing was up again from last report One Washington source quoted the market firmly at $470/st ($14.69/unit) FOB and up to $485/st ($15.16/unit) DEL for any available tons last week, with some suppliers reportedly allocating sales through May and June, and offering only limited tons for July delivery. Effective April 25, IRM’s posting for UAN-32 firmed to $470/st ($14.69/unit) DEL in Washington and eastern Oregon.

Western Canada: UAN-28 pricing was up significantly in Western Canada. Sources pegged the regional market at $548-$563/mt ($19.57-$20.11/unit) DEL, up more than $70/mt from last report, with the low again in Manitoba and the upper end in Alberta.

AMMONIUM NITRATE

Ammonium Nitrate, Market Watch

U.S. Gulf: As in the past few weeks, prompt barges on the water and ready to go were hard to find and still garnering a significant premium – $415-$425/st FOB, according to sources. Barges slated to load in a week or two were pegged around $370/st FOB.

Western Cornbelt: The ammonium nitrate market had reportedly firmed to $480-$490/st FOB for any available tons, with the low reported in the Missouri market on a spot basis.

California: No market was reported for ammonium nitrate in California. CAN-17 was unchanged at $300-$320/st FOB in the state, depending on location, with good movement reported. The AN-20 market was steady as well at $285/st truck-DEL.

Pacific Northwest: Ammonium nitrate pricing had reportedly firmed to $544/st rail-DEL in Montana. CAN-17 was pegged at the $313/st level FOB Kennewick, Wash., up slightly from last report.

AMMONIUM SULFATE

Ammonium Sulfate, Market Watch

Eastern Cornbelt: Ammonium sulfate was steady at $425-$445/st FOB. Ammonium thiosulfate pricing remained at $375-$380/st FOB in the Eastern Cornbelt.

Western Cornbelt: Granular ammonium sulfate pricing remained at $425-$445/st FOB in the Western Cornbelt. The ammonium thiosulfate market was steady as well at $380-$385/st FOB.

California: Ammonium sulfate pricing remained at $350-$400/st FOB in California, depending on grade and supplier. Standard grade ammonium sulfate was pegged by one source at the $380/st FOB level in the Central Valley last week.

Pacific Northwest: Ammonium sulfate remained at $380-$400/st FOB and $390-$410/st DEL in the Pacific Northwest, depending on grade.

Western Canada: Granular ammonium sulfate remained at $470-$510/mt DEL in Western Canada, depending on location and supplier.

PHOSPHATES

Di-Ammonium Phosphate, Market Watch, Mono-Ammonium Phosphate

Central Florida: With the export phosphate market paying a premium, NOLA barges reaching around $500/st FOB, and inventories remaining low, phosphate producers in Central Florida were holding firm to their price for Central Florida DAP.

A trader said it was virtually impossible to buy from a producer in Central Florida, pay for the rail cost, and make a profit. Meanwhile, dealers were holding firm to the belief that prices will go down, despite signs to the contrary.

Late last week, CF was holding firm to its list price. Mosaic was posted at $5/st FOB less, but had “nothing in its quiver,” a trader said he was told. The alternative has been to find a terminal that has a supply of phosphate purchased before prices started going up, and use that to make sales by truck, the trader said.

The Central Florida DAP price range was $475-$480/st FOB last week, up slightly from $470-$480/st FOB the previous week. CF Industries posted its list price at the $480/st FOB mark, and Mosaic increased its price to $475/st FOB. MAP continued to sell at a $20/st premium to DAP in Central Florida, about the same difference as from traders, but was essentially unavailable in Central Florida. PCS Sales, which produces MAP at its White Springs facility in North Florida, was selling at prices comparable to the market.

U.S. Gulf: During the previous week, prices for forward sales of phosphate pushed above the range for prompt sales, which was interesting in itself. Previously, prompt was bringing a premium.

Dealers, especially small dealers, still believed last week that the price would come down in May, but there was nothing to back that belief up. Instead, prices for forward sales from June into September were commanding as much as $10/st FOB above a prompt NOLA DAP barge.

Several sources said the number of phosphate barges on the river last week was low. “Everyone is tight,” said one. However, the spring season was coming to a close, and those buying were looking toward fall. Overall, prompt sales last week were down from the previous week, and that will likely continue to be the pattern.

The biggest driving force for higher prices has been the export market, and that will continue for the next couple of months. Terminal activity was down last week as farmers and dealers were trying to wrap up the planting season. Prices at terminals will have to increase once the lower-cost product in bins has been sold and replaced at current costs.

Crop prices were mixed last week. Prices for 2012 corn futures were lower, falling to $5.295/bushel for December, compared with the previous week’s $5.34/bushel. The corn price for December 2013 was $5.395/bushel, however, increasing from $5.35/bushel the previous reporting period. Soybeans for November 2012 moved up to $13.6775/bushel from $13.58/bushel the previous week, and beans for November 2013 increased to $12.35/bushel from $12.30/bushel a week earlier. Wheat for July 2012 tumbled to $6.155/bushel from $6.33//bushel the week before, and wheat for July 2013 was listed at $6.96/bushel last week, down from $7.005/bushel the previous week.

The prompt NOLA DAP barge price range for the week moved to $485-$500/st FOB, compared with $485-$495/st FOB the previous week. MAP barge prices were about the same as DAP last week. NOLA DAP barge prices for forward sales from June into September were in the $505-$510/st FOB range.

Eastern Cornbelt: DAP remained at $515-$525/st FOB regional warehouses, with MAP pegged in the $525-$540/st FOB range in the Eastern Cornbelt. 10-34-0 was unchanged at $700-$725/st FOB in the region.

Western Cornbelt: Phosphates and potash were going down in preplant applications on soybean ground in the region in early May. DAP was quoted at a solid $520/st F

POTASH

Market Watch, Potash Muriate

U.S. Gulf: Recent barge trades were put in the $480-$485/st FOB range. While prices have been under pressure for the past six months or so, one player last week said barge quantities in NOLA have been significantly reduced and the industry can now look toward summer fill season.

Eastern Cornbelt: Potash was steady at $525-$530/st FOB regional warehouses. There were reports of one supplier offering summer fill potash tons at the $500/st level, but that was not confirmed.

Western Cornbelt: Potash remained at $515-$535/st FOB in the region, depending on grade and location, with most sources quoting red granular potash at the $525-$530/st FOB range.

California: Muriate of potash remained flat at $590-$610/st DEL in California, depending on grade and location. Sulfate of potash (SOP) remained at $695-$705/st FOB, and potassium nitrate was unchanged at $1,020/st FOB for bulk tons and $1,090/st FOB for bags.

Pacific Northwest: Potash was generally tagged at $590/st DEL in the region, with reference prices ranging from $600-$620/st rail-DEL, depending on location. Potash pricing at Utah mine locations ranged from $530-$540/st FOB, depending on grade.

K-Mag was steady at $426-$431/st FOB.

Western Canada: Potash pricing in Western Canada remained at $607-$632/mt FOB regional warehouses, depending on grade and location. The market to Canadian customers FOB Saskatchewan mines was pegged in the $592-$603/mt FOB range.

SULFUR

Market Watch, Sulfur

Tampa: After the settlement between phosphate producers and their major suppliers at the end of April for second quarter prices for molten sulfur delivered to Tampa, supply and demand continued to remain in balance.

Interestingly, shortly after the Tampa price was settled, ADNOC raised its price for May sulfur by $10/mt, from $200/mt to $210/mt FOB. ADNOC’s price has increased about $20/mt FOB since the beginning of the year, while the Tampa price has gone up only $8/lt.

Last week, the U.S. Department of Energy said the weekly operating capacity rate for refineries increased 1.3 percent, from 84.7 percent to 86 percent. However, because refineries were using more sweet crude than sour, it will not provide any significant increase in the amount of sulfur produced.

A possible rail strike by Canadian Pacific workers could affect deliveries into the U.S., as well as Vancouver. Also, problems at the oil sands area were said to be over, and rates of production were returning to normal.

Vancouver: Spot prices for prill from Vancouver were running in the $180-$185/mt FOB range. Contracts were calling for prices between $190-$200/mt FOB.

The 5,000 members of the Teamsters Canada Rail Conference voted 95 percent for a strike position after May 22. The union represents conductors, trainmen, yardmen, locomotive engineers, and traffic controllers at Canadian Pacific Railway.

West Coast: Prices for sulfur from the West Coast were also in the $180-$185/mt FOB range.

Truck mishap spreads sulfur on Yosemite route

California, News, News Briefs, Sulfur

Yosemite National Park, Calif.—It took more than 24 hours of a professional environmental cleanup team working carefully not to cause any ignition to deal with the spilled contents of hundreds of bags of dusting sulfur from a flatbed truck near the south entrance to Yosemite. When they were finished, the team from PARC Environmental of Fresno had worked from late Sunday evening until Monday night, April 23, filling 20 cubic-yard roll-off bins and loading them on a special truck for disposal at a hazardous waste facility. There were a couple of fires that occurred before the PARC personnel arrived on the scene. The spill was caused when the driver crashed into a guardrail and ended up spreading the sulfur for a mile along Highway 41, which links up with the southern entrance of Yosemite National Park. The accident meant that nobody could exit or enter the park through that route, to the disappointment of a crowd of visitors showing up to take advantage of free entrance during National Park Week. Investigators questioned the driver to see why he was carrying a commercial load of sulfur into a national park where commercial trucks are banned. He was held by the National Park Service police for suspicion of driving under the influence.

Small fertilizer business gets okay to grow

Di-Ammonium Phosphate, Mono-Ammonium Phosphate, News, News Briefs, Sulfur, Urea

Sioux City, Iowa—The Woodbury County board has given the go-ahead to the expansion of a small operation that expects to be a major player in the fertilizer business. Prairie Farm Systems Owner Mark Pottorff, who started in the business 25 years ago “for something to do,” now has the approval of the board to take over a parcel of land in unincorporated Luton that once housed a school, which was torn down earlier this year. Board members indicated they support rezoning and cleaning up the plot for a business use. “I have outgrown where I am now. In Woodbury County it is hard to find suitable property. The additional space will let me increase where I sell fertilizer, which is now limited to within about 40 miles of Luton,” Pottorff explained. “What I am going to build is a storage facility and then I want to build a dry fertilizer plant.” He told Green Markets that he’s started to dabble in pelletized lime, ammonium sulfate, urea, and possibly a dry phosphate blend. “I am at the point in my business life where I either have to expand my business or just do the status quo. I have gone from absolutely nothing and, like my accountant said, I’m no longer just a business – I’m a company.” Pottorff wouldn’t say how much Prairie Farm Systems is worth, but did offer that he expects to increase the business up to 50 percent in the next four to five years.

Simplot adds new line of liquid NPK

Di-Ammonium Phosphate, Midwest, Mono-Ammonium Phosphate, News, News Briefs, Potassium Nitrate, Potassium Sulfate, UAN

Pocatello, Idaho—The J. R. Simplot Co. said last week that it has begun producing a new line of high-quality NPK liquid crop nutrient products. The new products, which have varying levels of nitrogen, phosphorus, and potassium, are designed for a wide array of applications, including foliar, banding, drip irrigation, and in-furrow. Because the products are neutral solutions, each with a very low salt index, Simplot says they can be safely placed on or next to seeds at recommended label rates, thereby allowing more efficient access to nutrients during germination. Simplot currently is producing the new products in limited quantities at its Pocatello, Idaho, fertilizer manufacturing facility. As a basic producer of both purified phosphoric acid and super phosphoric acid at the Pocatello facility, the company’s new initiative is a natural fit to meet the increasing demands for efficient nutrient placement, according to John Malinowski, vice president, business development and marketing. “The long-term objective will be to produce a full line of the highest-quality liquid fertilizers with chemical and physical characteristics designed to meet specific applications in a wide range of nutrient delivery systems,” he said. Further details were not available. For more information, contact Simplot specialty sales representatives Brad Weaver, 406.868.2292 for the West, or Angela Holbrook, 208.585.7091, for the Midwest.