U.S. Gulf: Granular urea prices were moving up last week, but there was a big disagreement over by how much.
Most players were putting new business within the $418-$443/st FOB range. However, there were outliers on both ends, with some saying lower and others much higher.
Sources said those seeing prices closer to $400/st were calculating new business out of Egypt that would not arrive for some time. In the meantime, there were reports by others that the high $400s/st to low $500s/st FOB had been achieved by one major player.
In the past two months there has been a large disconnect within the prompt range between ready-to-sail barges and those that might load within the next few weeks. This would continue to explain the higher number versus those still in the $400s/st FOB, whether for a few weeks out or for all of July.
In the meantime, prills continue to be thinly traded, with inland numbers suggesting a price of $500/st FOB.
Eastern Cornbelt: Nitrogen pricing was transitioning from prompt to summer fill pricing in the Eastern Cornbelt region, and sources reported a wide range of numbers as a result.
Sources quoted granular urea summer fill offers as low as $450-$470/st FOB in the Illinois market for July and August shipments, while one source said prompt pull was still tagged as high as $525-$545/st FOB. In Ohio, the urea market was quoted at $515/st FOB Toledo at midweek.
Western Cornbelt: Urea prices continued to fall, though sources said product was still being pulled for applications on rice in southern Missouri. Missouri sources tagged the prompt urea market at $525-$550/st FOB last week, depending on location. The Catoosa/Inola urea market in Oklahoma was quoted at the $530/st FOB level.
No summer fill prices were reported for urea in the region.
Northern Plains: The granular urea market was transitioning from prompt to summer fill pricing in the Northern Plains region, and the gap between the two was large.
Sources quoted the Twin Cities market for prompt pull at the $600/st FOB mark last week, down significantly from last report, while the summer fill price out of the Twin Cities market was quoted as low as $445/st FOB for July and August. No current delivered prices were confirmed in the North Dakota market last week.
Great Lakes: With no demand for prompt urea reported in the region, sources quoted only summer fill offers last week, and these pricing levels were down dramatically from spring. In Michigan, sources said fill tons could be pulled for as low as $515/st FOB northern Ohio shipping points. In the Wisconsin market, urea fill for July and August was quoted in the $450-$470/st FOB range.
Northeast: The urea market continued to drop in the Northeast. “Tomorrow the price will be different than today,” said one contact. Sources pegged the Fairless, Penn., urea market in the $585-$595/st FOB range at midweek.
High heat and humidity settled over much of the Northeast and mid-Atlantic region last week, sending temperatures into the 90s in many areas, and heat index readings into the triple digits. Eight states were under heat advisories or excessive heat warnings at midweek.
Indonesia: Pusri scrapped the tender it had scheduled for June 15. Sources say the reference price floor was $470/mt FOB, and no one was interested at that level.
For traders, the scrapping of the tender was just one more indicator that the urea market was soft and getting softer.
Sources reported that Pusri was looking to do a few private deals to move some of the tons quickly. In the end, it looks as if none of those talks worked out.
Pusri will close another tender June 22 with three lo