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USDA projects nearly 96 million acres of corn; wheat also up, but soybeans, cotton, rice down

Eastern Cornbelt, Featured, Houston, TX, Midwest Cornbelt - Retail, News, Northern Plains, Southern Plains, Western Cornbelt

USDA released its Prospective Plantings report on March 30, declaring that U.S. corn growers intend to plant 95.9 million acres of corn for all purposes in 2012, up 4 percent from last year and 9 percent higher than in 2010. If realized, USDA said this will represent the highest planted acreage in the U.S. since 1937, when an estimated 97.2 million acres were planted.

Planted corn acreage is expected to be up in most states compared to last year due to expectations of better net returns in 2012 compared to other commodities, USDA said. Record corn acreage is expected in Idaho, Iowa, Minnesota, North Dakota, and South Dakota, while acreage is expected to decrease in the central and southern Great Plains, which experienced severe drought and above-normal temperatures in 2011.

Soybean planted area for 2012 is estimated at 73.9 million acres, USDA said, down 1 percent from last year and down 5 percent from 2010. Compared with 2011, soybean planted area is down or unchanged across the Corn Belt and Great Plains, with the exceptions of Illinois, North Dakota, South Dakota, and Wisconsin.

Compared with last year, soybean planted acreage intentions are down in many areas as some acreage is expected to shift to corn, USDA said. Additionally, soybean acreage intentions in Kansas, Oklahoma, and Texas are down from 2011 due to drought conditions that have continued from last year into early March. If realized, the soybean planted area in New York and North Dakota will be the largest on record, and the planted area in Pennsylvania will tie the previous record, USDA said.

All wheat planted area is estimated at 55.9 million acres, up 3 percent from 2011. The 2012 winter wheat planted area, at 41.7 million acres, is up 3 percent from last year, but down 1 percent from the previous estimate. Nationally, more winter wheat acres were seeded this year due to higher prices and acreage rebounds in Kansas, Oklahoma, and Texas, where dry conditions had limited 2011 planted acres. If realized, planted winter wheat acres will be record highs in North Carolina and North Dakota, but record low winter wheat planted acreage is expected in Nebraska and Ohio.

Area planted to other spring wheat for 2012, including hard red spring wheat and durum, is estimated at 12.0 million acres, down 3 percent from 2011. Growers intend to plant 5.95 million acres of sorghum in 2012, up 9 percent from last year. If realized, Oklahoma sorghum acreage will represent a record low this year, while Texas acreage is expected to be up from a record low last year. Kansas and Texas are the leading sorghum-producing states and account for 76 percent of the expected U.S. acreage. As of March 25, Texas growers had planted 31 percent of their sorghum crop, USDA noted, 13 percentage points behind last year and 5 points behind the five-year average.

All cotton planted area for 2012 is expected to total 13.2 million acres, USDA reported, 11 percent below last year. Upland acreage is expected to total 12.9 million acres, down 11 percent from 2011. American Pima acreage is expected to total 270,000 acres, down 12 percent from 2011.

USDA noted that field preparation for cotton is taking place in the Southeast, while planting is underway in southern Texas and Arizona. Heavy precipitation in the Delta Region has delayed fieldwork in some areas and eased the drought in Louisiana. A mild winter in some cotton growing areas has producers bracing for potentially higher than normal insect and weed pressure, USDA said.

Area planted to rice in 2012 is expected to total 2.56 million acres, down 5 percent from 2011 and the lowest planted acreage since 1987. USDA attributed the lower acreage to higher prices for competing commodities and poor export demand. Area planted to rice in Arkansas, the largest rice producing state, is expected to drop to its lowest level since 1989. In California, where water supply

Mosaic 3Q earnings off by 50 percent; North American potash volumes down 62 percent

Ammonia, Di-Ammonium Phosphate, Featured, Mono-Ammonium Phosphate, News, Potash Muriate

The Mosaic Co. reported a 50 percent drop in net earnings for the third quarter ending Feb. 29, 2012, to $273.3 million ($.64 per diluted share) from the year-ago $542.1 million ($1.21 per share). Net sales were off only slightly, to $2.19 billion from the year-ago $2.2 billion. Mosaic said growth in phosphate sales was offset by declines in potash sales.

“The potash segment’s operating results reflect delayed purchases, as buyers remained cautious,” said Jim Prokopanko, Mosaic president and CEO. “While the seasonal lull and risk aversion slowed sales in the third fiscal quarter, we continue to expect near-record global shipments in 2012 and a very strong North American spring season. During the quarter we produced 1.8 million mt and positioned inventory to capture global demand as it emerges.”

Third-quarter potash operating earnings were off 43 percent to $233.9 million on sales of $553.2 million, compared to the year-ago $413.9 million on sales of $757.7

million. Overall, potash sales volumes were off 41 percent during the quarter, to 1.09 million mt from the year-ago 1.86 million mt, while prices were up 27 percent, to $453/mt from $358/mt. The biggest drop in volumes was in North America, where they were down 62 percent in the quarter to 291,000 mt from the year-ago 757,000 mt, while prices were up 35 percent, to $531/mt from the year-ago $394/mt. International volumes were off 35 percent to 618,000 mt from 944,000 mt, while those prices were up 30 percent to $411/mt from $316/mt. Non-agricultural potash volumes were up 12 percent during the quarter, to 182,000 mt from 162,000 mt.

“We generated strong phosphate sales in the quarter,” noted Prokopanko. “While margins are expected to remain compressed through the end of this fiscal year, the beginning of fiscal 2013 should benefit from increased production at the South Fort Meade mine and lower spot prices on raw materials. Longer term, we believe the phosphate market provides us with significant opportunities, with strong grower economics driving record shipments in both 2012 and 2013.” In addition, Mosaic is projecting lower exports from China and Saudi Arabia, believing the Ma’aden plant will not reach its full 3 million mt capacity in 2012.

Third-quarter phosphate operating earnings were off 49 percent, to $190.2 million on sales of $1.65 billion from the year-ago $371.8 million on sales of $1.46 billion. Total phosphate volumes were up 9 percent during the quarter, to 2.6 million mt up from the year-ago 2.37 million mt. Within crop nutrient sales, phosphates to North America were up 29percent to 931,000 mt from 719,000 mt, while international were up 6 percent to 857,000 mt from 807,000 mt. The average DAP price was off 7 percent to $536/mt from $543/mt.

Higher ammonia and sulfur prices came into play during the quarter to crimp phosphate margins. The average ammonia price was up 45 percent to $589/mt from $406/mt, while the average sulfur price was up 37 percent to $228/lt from $166/lt.

Mosaic nine-month net earnings were $1.42 billion ($3.24 per share) on sales of $8.29 billion, down from the year-ago $1.86 billion ($4.17 per share) on sales of $7.1 billion.

Nine-month potash operating earnings were up 12 percent, to $993.7 million on sales of $2.26 billion from the year-ago $883.3 million on sales of $2.1 billion. Nine-month potash volumes were off 13 percent to 4.67 million mt from 5.3 million, while prices were up 31 percent to $445/mt from $340/mt. North American volumes were off 39 percent to 1.43 million mt from 2.3 million mt, while prices were up 44 percent, to $527/mt from $366/mt. International volumes were up 7 percent to 2.7 million mt from 2.53 million mt, while prices were up 37 percent to $400/mt from $292/mt. Non-ag potash volumes were up 13 percent to 527,000 mt from 468,000 mt.

Nine-month phosp

AMMONIA

Ammonia, Black Sea, Eastern Cornbelt, Great Lakes, Market Watch, Middle East, Northern Plains, U.S. Gulf, Western

U.S. Gulf/Tampa: Yara concluded April business with Mosaic last week at the $470/mt DEL mark, up some $70/mt from the March business.

The industry was watching the business closely to see if it added credence to the $359/mt DEL that Mosaic had bought in late March from a heretofore unheard of Hong Kong-based trader, Zhineng Jiaoyi Ltd. Reportedly, the Chinese company has taken over the FertiNitro export tons that used to be handled by Koch. Sources last week questioned whether the vessel, Brugge Venture, which was to be used for the trade, would make it to Venezuela in time to get the product to Tampa by the end of April.

In light of Yara’s concluding $470/mt within one week of the deal, and other international prices, including the Black Sea and Middle East moving up in the same time frame, the $359/mt does appear to be a questionable or distressed cargo and outside of the conventional market. Indeed, observers last week argued that the $470/mt was low when considering other international prices.

Eastern Cornbelt: A blistering preplant pace for ammonia was resulting in lengthy truck lines at some regional terminals last week, and also contributing to higher prices for prompt tons. One Illinois source said growers in his trade area had easily applied a third of their spring ammonia volumes by early last week. Another source said the heavy preplant run will likely result in significantly less sidedress demand later this spring.

Although some Illinois contacts said spot ammonia tons could still be had early in the week in the $640-$650/st FOB range, the prompt ammonia market had reportedly firmed to the $680/st FOB level or higher out of some locations as the week advanced. CF’s ammonia postings for orders shipped March 28-30 included $680/st FOB Mt Vernon, Ind., and Illinois terminals at Albany, Kingston Mines, Peru, and Seneca; $690/st FOB Cowden, Ill., $695/st FOB Terra Haute, Ind.; and $700/st FOB Huntington, Ind.

Western Cornbelt: The ammonia market was firming in the Western Cornbelt region, and movement was heavy in late March. Several Iowa sources tagged the dealer market commonly at the $625/st FOB mark for prompt tons, with the low end of the range quoted at $610/st FOB Nebraska terminals. One Iowa contact quoted retail ammonia pricing in the $710-$760/st range at midweek.

Although parts of Missouri remained wet last week, other locations reported that fieldwork had kicked into high gear. “Someone turned a switch on this morning,” said one Iowa contact at midweek. “Today it really fired off. All products are running.”

CF’s ammonia postings for orders shipped March 28-30 included $610/st FOB Blair and Fremont, Neb.; $620/st FOB Port Neal and Whiting, Iowa; $630/st FOB Spencer, Iowa; $640/st FOB Garner, Iowa; and $670/st FOB Palmyra, Mo. CF’s postings in the Southern Plains region for the March 28-30 period included $570/st FOB Verdigris and Woodward, Okla., $585/st FOB Conway, Kan., and $590/st FOB Clay Center, Kan.

Northern Plains: North Dakota sources quoted the anhydrous ammonia market at $715-$720/st FOB terminals and $750/st DEL for prompt tons. In Minnesota, the prompt ammonia market was pegged in the $625-$635/st FOB level early in the week, but higher postings were announced at midweek.

CF’s ammonia postings for orders shipped March 28-30 included $675/st FOB Mankato, Minn., $690/st FOB Pine Bend, Minn., $700/st FOB Glenwood, Minn., $725/st FOB Grand Forks, N.D., and $740/st FOB Velva, N.D.

Great Lakes: Anhydrous ammonia pricing was reported at $680-$700/st FOB for prompt tons in the Great Lakes region, with Wisconsin sources talking of long lines at truck terminals. CF’s ammonia postings for orders shipped March 28-30 included $680/st FOB Courtright,

UREA

Black Sea, Eastern Cornbelt, Great Lakes, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, Pakistan, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf: Granular barge prices were fairly stable last week, with sources calling the range $570-$610/st FOB for the week. The lower number started the week, with most calling the market $595-$610/st by the end of the week. New prill business was reported at $505/st FOB.

Eastern Cornbelt: Urea pricing in the Eastern Cornbelt was working its way up to higher numbers. Illinois sources said spot tons could be had for as low as $595-$600/st FOB early in the week, but others were calling the regional urea market as high as $620/st FOB by midweek for new spot sales.

Western Cornbelt: Sources in the Western Cornbelt quoted the granular urea market at $615-$640/st FOB regional terminals, up roughly $20/st from the previous week, with the upper end of the range reported in western Iowa. A Missouri source described urea availability out of regional terminals as “nip and tuck” last week.

Effective March 24, Koch’s urea postings in Oklahoma firmed to $615/st FOB Enid and Inola/Catoosa, up $20/st from the company’s March 22 reference price. One source pegged the urea market FOB Memphis, Tenn., at the $610/st level at midweek.

Northern Plains: The granular urea market was reported at $615-$625/st FOB the Twin Cities, with the upper end of the regional range pegged at the $645/st FOB level out of North Dakota terminals at midweek. No delivered pricing quotes were reported last week. “Tons have been really tight,” said one North Dakota source.

Great Lakes: Michigan sources quoted the granular urea market firmly in the $630-$645/st FOB range, depending on the terminal, which was up some $180/st from pricing levels for replacement tons just six weeks earlier. Wisconsin sources quoted the dealer market for granular urea solidly at the $620/st level FOB terminals at midweek.

Northeast: Granular urea pricing was firming rapidly in the Northeast region. Early in the week, sources said spot tons could be had for $605-$610/st FOB Pennsylvania terminals. By midweek, however, dealer postings out of several East Coast terminals had reportedly firmed to the $645/st FOB level, and some locations were out of product.

India: The IPL tender closed Friday, March 23, with only 1.5 million mt made available in firm offers. Industry expected the tender – the first of the new Indian application season – to be dominated by Iranian tons. And they were not disappointed.

About 775,000 mt of Iranian material was offered openly in the tender. In the end, Emmsons walked away with a 500,000 mt award at $385-$390/mt CFR, depending on the discharge port.

The tally of the tender:

Tally of the Tender

Sources say this purchase was a good start for the season. Indian buyers were able to hold off until the end of March because of the large stockpiles built up at the tail end of the previous application season.

One trader noted that if IPL could have gotten any of the other suppliers to match the Emmsons price, it most likely would have taken more material.

The general view now is that another tender will be called in mid or late April. Whenever the next tender is called, however, the buyer will have to ready to pay more than what IPL just did.

The Iranian material was exceptionally cheap in this tender because of poor sales and strong production since December, when IPL closed the tender before this one. Stockpiles were building up in Iran during the first quarter.

At the same time that IPL is taking 500,000 mt, TCP/Pakistan is negotiating with Iran to set up barter deals for Iranian urea. The removal of those

NITROGEN SOLUTIONS

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

U.S. Gulf: Urea took a back seat last week, remaining stable, and let UAN take the driver’s seat. As a result, UAN prices took off. Sources said they ran up from $330/st ($10.31/unit) FOB all the way to $360/st ($11.25/unit) FOB, if not higher.

Eastern Cornbelt: The UAN market was ramping up quickly in the Eastern Cornbelt. Sources quoted the dealer market solidly in the $11.50-$11.90/unit FOB range out of regional terminals as the week advanced. Illinois sources reported UAN-32 at $375-$380/st ($11.72-$11.88/unit) FOB at midweek, while Ohio contacts tagged the UAN-28 market at the $330/st ($11.79/unit) FOB mark out of inland points.

For tons ordered and shipped from March 27-30, CF posted UAN at $11.50/unit FOB Mt. Vernon, Ind.; $11.75/unit FOB Kingston Mines, Ill., and E. Liverpool, Ohio; $11.80/unit FOB Peru, Ill.; $11.88/unit FOB Terra Haute, Ind.; and $11.90/unit FOB Cincinnati, Ohio, and Albany, Ill.

Western Cornbelt: UAN pricing was firming quickly in the Western Cornbelt, although one source said there has not been a lot of new interest from buyers. Sources quoted the UAN-32 market in the $369.60-$380/st ($11.55-$11.88/unit) FOB range out of regional terminals, up some $30-$35/st from the previous week, with reports of dealer reference levels as high as $390/st ($12.19/unit) out of some terminals in western Iowa.

For tons ordered and shipped from March 27-30, CF posted UAN at $11.55/unit FOB St. Louis, Mo., and $11.75/unit FOB Garner, Iowa. Effective March 30, Koch’s UAN postings FOB Enid, Okla., moved to $375/st for UAN-32 ($11.72/unit) and $328.13/st for UAN-28 ($11.72/unit).

Northern Plains: UAN pricing covered a broad range in the Northern Plains region, reflecting a firming market in late March. Minnesota sources quoted UAN-28 at the $320/st ($11.43/unit) FOB level at the low end of the range, while delivered UAN-28 in the North Dakota market was pegged as high as $360/st ($12.86/unit) from Canadian shipping points.

CF reposted UAN at $12.15/unit FOB Pine Bend, Minn., for tons ordered and shipped from March 27-30.

Great Lakes: UAN pricing was moving up rapidly in the Great Lakes region. Michigan contacts pegged the UAN-28 market in the $333-$347/st ($11.89-$12.39/unit) FOB range last week, while Wisconsin sources quoted UAN-32 at the $380/st ($11.88/unit) FOB mark on the low end.

Northeast: The UAN market was quoted in the $10.50-$10.80/unit range FOB Baltimore for any available tons, with reports of some suppliers out of product at midweek. That range reflected a sizable increase from last report. Out of terminals in upstate New York, the UAN-32 market had firmed to $375/st ($11.72/unit) FOB, but sources said higher replacement costs would push dealer pricing up again in the near term.

UAN-30 pricing out of Norfolk, Va., and Wilmington, N.C., was quoted at the $310/st ($10.33/unit) FOB mark last week, also up significantly from last report.

AMMONIUM SULFATE

Ammonium Sulfate, Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt: Ammonium sulfate pricing was moving up in the Eastern Cornbelt region in the wake of higher postings. Illinois sources pegged the granular ammonium sulfate market in the $385-$400/st FOB range last week, but effective March 26, Honeywell’s granular ammonium sulfate postings firmed to $415/st FOB Danville, with midgrade ammonium sulfate postings moving to $385/st FOB Danville and Byron, Ill.

DSM moved its delivered granular ammonium sulfate reference price in the Midwest to $415/st, with the low quoted at $394.25/st DEL after discounts.

The ammonium thiosulfate market was quoted at $350-$370/st FOB, with the low reported in the Indiana market on a spot basis.

Western Cornbelt: Granular ammonium sulfate pricing had reportedly firmed to $390-$415/st FOB in the region, with the upper end reflecting new postings. One Missouri contact quoted the common dealer market at the $395/st FOB level at midweek, but said another increase was likely in the near term.

Effective March 26, Honeywell’s granular ammonium sulfate postings firmed to $415/st FOB Dubuque, Iowa, St. Louis, Mo., and Omaha, Neb. Mid-grade ammonium sulfate postings from the company moved on that date to $385/st FOB Omaha.

American Plant Food Corp. announced higher ammonium sulfate postings in the Southern Plains region. Effective April 2, APF’s granular ammonium sulfate postings in Texas will firm $20/st from March 1 reference prices, moving to $345/st FOB Freeport, $355/st FOB Galena Park, $370/st FOB Fort Worth, and $385/st FOB Littlefield. Coarse ammonium sulfate postings from the company will move to $335/st FOB Freeport, $345/st FOB Galena Park, $360/st FOB Fort Worth, and $375/st FOB Littlefield, and standard grade postings will firm on April 2 to $330/st FOB Freeport and $370/st FOB Littlefield. APF’s N-Pac Compacted posting will firm on that date to $360/st FOB Galena Park.

The ammonium thiosulfate market was pegged at $360-$380/st FOB in the Western Cornbelt region.

Northern Plains: Granular ammonium sulfate was pegged at $390/st DEL in North Dakota and $400/st FOB in the Minnesota market, but higher postings were announced from some suppliers. Effective March 26, Honeywell increased its granular ammonium sulfate postings to $415/st FOB Roseport, Minn., up $20/st from the company’s March 12 reference prices. Honeywell’s mid-grade ammonium sulfate postings moved on March 26 to $385/st FOB Roseport and Red Rock, Minn.

Ammonium thiosulfate was quoted at $430/st DEL in North Dakota.

Great Lakes: Effective March 26, Honeywell raised its granular ammonium sulfate postings to $415/st FOB Amherst Junction and Prairie du Chien, Wisc., a $20/st increase from the company’s March 12 list prices. While there were reports that lower priced tons might still be available at some locations, most sources quoted the granular ammonium sulfate market last week firmly in the $405-$415/st FOB range in the region, with mid-grade at the $385/st FOB mark.

Ammonium thiosulfate was pegged in the $350-$370/st FOB range in the region.

Northeast: Granular ammonium sulfate pricing was up some $30/st in the Northeast region. Sources quoted delivered tons at the $385/st mark in the Northeast after discounts, with new reference levels at the $405/st DEL level in the region.

New FOB postings for granular ammonium sulfate in the Southeast region included $340/st FOB Hopewell, Va., and $345/st FOB Augusta, Ga. DSM’s delivered postings for granular ammonium sulfate moved to $350/st in the Carolinas, $360/st in Georgia and Alabama, and $370/st in Florida.

PHOSPHATES

Central Florida, Di-Ammonium Phosphate, Eastern Cornbelt, Great Lakes, India, Market Watch, Mono-Ammonium Phosphate, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida: The Southeast continued to be a strong market, and business was on the increase in the Northeast and Eastern Cornbelt last week. Temperatures continued to be warm for this time of year, and field activity was picking up steam.

Lining up trucks to move product from terminals to dealer warehouses in the Mid-Atlantic and the Eastern Cornbelt was especially difficult late last week, but the reason was not clear.

Mosaic was using railcars to ship phosphate from Central Florida to its warehouse system. Few – or very few – new prompt spot railcar transactions were done last week, but that situation could change rapidly, as dealers deplete bins and begin reordering.

Inventories in Central Florida were on the low side last week, but that should begin to change as Mosaic winds down its curtailment of 250,000 st of phosphate at the end of this month. During the slow domestic winter season, most of what was produced was used for export.

Raw materials costs for phosphate products will increase in April. Recent ammonia negotiations resulted in a bump of $70/mt, from $400/mt to $470/mt. Negotiations for new second-quarter molten sulfur prices began last week, and a source said sulfur producers were seeking an increase of $10/lt.

The Central Florida DAP price range drifted south a little last week, to $460-$465/st FOB. CF Industries was posted at the $465/st FOB mark, and Mosaic was ready to do business around $460/st FOB, depending on quantity. MAP was listed at a $20/st premium to DAP by Mosaic in Central Florida, about the same difference as from traders, and continued to be in short supply. PCS Sales was selling at prices comparable to the market.

U.S. Gulf: NOLA phosphate barge transactions were a little slower last week, and buyers were willing to pay a bit more for barges that were already on the water and moving north.

Mosaic has returned to near full production at Faustina, and has completed work on a plant to produce micro-essentials, along with DAP and MAP.

Despite the arrival of an early spring this year, the NOLA phosphate market has yet to spring into full gear. One source said it was being restrained by fears of having anything left at the end of the season, which was odd because the season had only just begun. Apparently, many buyers were waiting until they had sold a fairly large portion of the barge position they purchased before going back into the market.

Most traders were far more concerned with urea than DAP or MAP. However, the next couple of weeks may be the most important for DAP. In order for farmers to get the maximum yield from the corn crops, a lot more DAP will have to be put on the ground.

As the export market continued to weaken last week, the chances of using domestic phosphate barges for transloading and resale offshore were diminishing. Russian DAP was still a possibility, but even that was becoming less attractive.

The Army Corps of Engineers had a small craft advisory in effect for the Arkansas River last week, as the flow was twice as fast as the Corps requires to issue the warning. Submerged logs and other debris carried into the river made it dangerous, even for barge traffic.

For the second week in a row, crop prices were down. Although crop prices were trending downward, they were still high on a historical basis. It is still a good time to be a farmer.

Prices for corn futures were lower last week compared to the previous week, falling from $5.5625/bushel to $5.2925/bushel for December 2012. The corn price for December 2013 was $5.26/bushel, decreasing from $5.48/bushel the previous reporting period. Soybeans for November 2012 moved lower to $13.10/bushel from $13.135/bushel the prior week, and beans for November 2013 decreased to $12.215/bushel from $12.2325/bushel a week earlier. Whe

POTASH

China, Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, Potash Muriate, U.S. Gulf, Western Cornbelt

U.S. Gulf: Potash barges remained flat and were called $490-$495/st FOB.

Eastern Cornbelt: The potash market remained in the $530-$540/st range FOB most warehouses in the Eastern Cornbelt region, although there were reports from some Illinois sources of warehouse tons as low as $520-$525/st FOB on a spot basis. One Illinois source quoted rail-delivered red granular potash at the $532/st level to his location at midweek.

Western Cornbelt: Potash was pegged at $525-$545/st FOB regional warehouses, depending on grade and location. Most of the spot quotes for red granular potash fell in the $530-$540/st FOB range in Iowa and Missouri.

Northern Plains: Potash pricing in the Northern Plains was down from last report. North Dakota sources quoted delivered tons in the $530-$540/st range, while pricing out of Minnesota warehouses was reportedly as low as $515-$525/st FOB

Potash pricing FOB Saskatchewan mines for U.S. customers remained at $530-$540/st FOB, depending on grade and supplier.

Great Lakes: Potash pricing was down from last report in the Great Lakes region. Michigan sources quoted red granular potash at $535-$540/st FOB, with white granular in the $542-$547/st FOB range out of warehouses in the state. The low end of the potash range was quoted at the $530/st FOB mark in Wisconsin.

Northeast: Potash pricing continued to slip in the Northeast. Sources quoted granular potash at $540-$550/st FOB and $565/st rail-DEL in the region.

China: Israel Chemicals Ltd. (ICL) has signed contracts to supply Chinese companies with some 550,000 mt of potash during the second quarter of 2012. There is also an option to supply an additional 120,000 mt. The pricing is unchanged from the previous contracts to China at $470/mt CFR.

The 550,000 mt represents an increase over the 500,000 mt achieved in the year-ago period. “The new agreements underscore our strategic decision back in 2010 to increase the number of customers in China and to sell directly to fertilizer producers and distributors,” said Danny Chen, ICL Fertilizers CEO.

SULFUR

Market Watch, Sulfur, Tampa, Vancouver, West Coast

Tampa: Preliminary negotiations for second-quarter molten sulfur prices for delivery to Tampa began last week, but will probably not be settled until near the end of the month, which is about normal.

A source said sulfur producers were seeking an increase of about $10/lt, but that will probably meet some stiff resistance from the phosphate industry, which has adequate supplies and more stockpiled.

Mosaic was concluding its self-imposed curtailment of phosphate production at the end of the month, so it should begin using somewhat more sulfur than it did during the first quarter of the year. The company has been purchasing molten sulfur at below-market prices and has been putting it on the ground at its facility in Texas.

Refinery capacity operating rates for last week increased from 82.2 percent to 84.5 percent, an increase of 2.3 percent, according to the U.S. DOE.

Vancouver: Speculators in China have pushed the price of sulfur there to $210-$220/mt, and that could increase a bit more. In Vancouver, spot prices were in the $180-$200/mt FOB range, and contract talks were in process.

West Coast: Spot prices for prill on the West Coast were said to be in the $180-$200/mt FOB range last week.