All posts by webster@kennedyinfo.com

Potash

Eastern Cornbelt: Potash pricing was flat at $515-$530/st FOB regional warehouses, depending on grade and location.

Western Cornbelt: Potash was steady at $510-$530/st FOB regional warehouses, depending on location. Several sources pegged the red granular potash market commonly in the $520-$525/st FOB range in the Western Cornbelt region.

California: Muriate of potash remained flat at $590-$610/st DEL in California, depending on grade and location. Sulfate of potash (SOP) was steady 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 FOB or DEL in the Pacific Northwest, 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 and in tight supply in the region.

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 quoted in the $592-$603/mt FOB range.

Phosphates

Central Florida: Although prompt railcar sales of Central Florida phosphates were minimal last week, the demand was greater in the Northeast than in past weeks. That region was being served primarily from warehouses, but there were major problems getting trucks to make deliveries due to a lack of backhaul for truckers.

Florida was still suffering from a lack of rain, and that may continue into mid-June, before the seasonal rains begin.

The Central Florida DAP range last week moved to $475-$480/st FOB from the previous week’s $470-$480/st FOB. CF Industries posted its list price at the $480/st FOB mark, and Mosaic was at $480/st FOB. A small amount from traders who held positions obtained earlier could be as low as $475/st FOB, but those tons will be increasingly hard to find.

MAP continued to sell at a $20/st premium to DAP in Central Florida, about the same difference as from traders. PCS Sales, which produces MAP at its White Springs facility in North Florida, was selling at prices comparable to the market.

U.S. Gulf: Most of the southern areas of the Midwest were essentially finished with spring planting, while the effort was continuing in the north up to the Twin Cities, where terminals were seeing more activity than other areas last week.

The export market was having the effect of supporting the NOLA DAP and MAP barge market on the river. Exportable NOLA phosphate barges were commanding a higher price than non-exportable barges. Forward sales were a big part of the market last week and will be for some time, as they fell mainly in the $495-$500/st FOB range – and the later the delivered date, the higher the price.

Exportable barges were coming from Mississippi Phosphate or CF Industries, and could bring a profit even if the price was as high as or more than $500/st FOB, because Brazil was paying in the range of $610/mt DEL for DAP and up to $620/mt DEL for MAP.

Terminal prices were still in the $515-$540/st FOB range for DAP, and MAP was seeing slightly increased activity in some areas. The highest prices were in the most northerly locations, and the spread between DAP and MAP was running $20/st FOB or more in some areas last week.

Corn prices were down last week, wheat was up, and soybeans were mixed. Prices for 2012 corn futures fell from $5.19/bushel the previous week to $5.15/bushel for December. The corn price for December 2013 was $5.235/bushel, decreasing from $5.275/bushel the previous reporting period. For November 2012, soybeans moved down to $12.74/bushel from $12.96/bushel the previous week, but soybeans for November 2013 increased to $11.62/bushel from $11.585/bushel a week earlier. Wheat for July 2012 rose to $6.6425/bushel from $6.2975/bushel the week before, and wheat for July 2013 was listed at $7.27/bushel last week, up from $6.945/bushel the previous week.

The prompt NOLA DAP barge price range for the week was pegged at $480-$495/st FOB based on sales, compared with the previous week’s $485-$495/st FOB range. MAP prices were up in the $515-$530/st FOB range, with the highest price for exportable product. NOLA DAP barge prices for forward sales from June into September were in the $495-$500/st FOB range.

Eastern Cornbelt: DAP remained at $515-$530/st FOB regional warehouses, with the low quoted in Illinois on a spot basis. MAP was $10-$20/st higher than DAP. 10-34-0 remained at $680-$725/st FOB in the Eastern Cornbelt, with the low in Illinois and the upper end quoted in Ohio.

Western Cornbelt: DAP pricing remained in the $520-$525/st range FOB most regional warehouses, with MAP pegged at $520-$545/st FOB in the Western Cornbelt, depending on location. 10-34-0 was a nominal $680-$700/st FOB in the region.

California: DAP and MAP were unchanged at $6

Ammonium Sulfate

Eastern Cornbelt: Ammonium sulfate was unchanged at $425-$445/st FOB in the Eastern Cornbelt, with mid-grade referenced at the $415/st FOB level. Ammonium thiosulfate was steady at $370-$380/st FOB in the region.

Western Cornbelt:
Granular ammonium sulfate remained in a broad range at $415-$445/st FOB, depending on location, with the upper end reflecting dealer postings.
Ammonium thiosulfate was steady as well at $365-$385/st.

California:
Ammonium sulfate pricing was pegged at $370-$400/st FOB in California, depending on grade and supplier.

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

Western Canada:
The granular ammonium sulfate market had reportedly firmed to $550-$555/mt DEL, up some $45-$80/mt from last report, depending on location and supplier.

Ammonium Nitrate

U.S. Gulf: The ammonium nitrate market was essentially quiet last week, and barge prices were unchanged at $365-$375/st FOB. Sources said only a few nitrate barges remained on the river. There were reports of a price as low as $360/st FOB, but that level could not be verified.

Western Cornbelt: The ammonium nitrate market was steady at $480-$490/st FOB in the Western Cornbelt region, and in tight supply. One source said product is moving out for sidedress demand as quickly as replacement cars come in.

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. The AN-20 market had reportedly firmed to $325-$335/st truck-DEL on May 18, depending on destination, up some $40-$50/st from last report.

Pacific Northwest:
Ammonium nitrate remained at $544/st rail-DEL in Montana and in limited supply, with tons reportedly moving for potato topdressing.

CAN-17 was pegged at the $313/st level FOB Kennewick, Wash., and was reportedly on allocation.

Nitrogen Solutions

U.S. Gulf: UAN was relatively quiet last week and far less volatile than urea, but the price appeared to have declined about $20/st FOB – probably in reaction to the declining value of granular urea. UAN barges were reported at $365-$370/st ($11.41-$11.56/unit) FOB.

Eastern Cornbelt:
UAN-32 was unchanged at $435-$445/st ($13.59-$13.91/unit) FOB in the Eastern Cornbelt, with UAN-28 pegged at the $385/st ($13.75/unit) FOB level in Ohio.

Western Cornbelt:
The UAN-32 market remained at $415-$435/st ($12.97-$13.59/unit) FOB regional terminals, with reference prices quoted at the $440/st ($13.75/unit) FOB level at some locations. One source said sidedress demand in his trade area will continue for the next month because corn growth there is at all stages, with some areas forced to replant in May, and other areas seeing stalled growth due to dry conditions.

California:
UAN-32 pricing in California remained in a broad range at $395-$425/st ($12.34-$13.28/unit) FOB, depending on supplier and location, with the lower end quoted out of the Stockton market. Sources quoted the upper end of the range as a dealer reference level before discounts. No rail-delivered pricing quotes were reported.

Several sources described spring fertilizer volumes as heavy overall, and there is still a lot of sidedress work to do on silage corn.

Pacific Northwest: UAN-32 supplies remained tight in the Pacific Northwest. Sources pegged the market at $470/st ($14.69/unit) FOB in Washington, with delivered tons quoted in a broad range at $440-$485/st ($13.75-$15.16/unit), depending on supplier and time of delivery.

Western Canada: UAN-28 pricing was steady at $548-$563/mt ($19.57-$20.11/unit) DEL, with the low again in Manitoba and the upper end in Alberta.

Urea

U.S. Gulf: After skyrocketing in late April and early May, the urea barge market continued to weaken last week, and had fallen to as low as $600/st FOB for loadings at New Orleans. Barges already loaded and moving north were running as high as $650/st FOB early last week, but then began to slide as well. Toward the end of the week, the price was much closer to $630/st FOB for a NOLA barge in an attractive location.

The price for prill urea was sitting around $600/st FOB, but that could strengthen during the next couple of weeks as rice farmers make their demands. A decrease in the price for granular urea could help hold down prill as well, however.

Eastern Cornbelt: Urea prices out of regional terminals were reportedly starting to slip as NOLA barge values slide and demand for spot tons wanes. Sources quoted terminal prices for urea in the Eastern Cornbelt in a broad range at $710-$740/st FOB, depending on location.

Western Cornbelt: Sidedress movement continued last week, and rice growers in Missouri were also topdressing with urea. Although dealer reference levels remained as high as $740/st FOB in the region, sources quoted the dealer market for granular urea more commonly in the $710-$720/st FOB range, with reports from Missouri sources of $705/st FOB available on a spot basis.

California: The granular urea market was pegged at $665-$675/st FOB and $685-$705/st DEL in California, though some suppliers were out of product in mid-May.

Pacific Northwest: Granular urea pricing covered a broad range in the Pacific Northwest in mid-May, with sources reporting a lot of sideways trading going on as the spring application season winds down and dealers try to end with minimal inventory. The dealer market was quoted at $675/st FOB in Washington, with delivered tons ranging widely from $695-$765/st in the region, depending on supplier and location.

Western Canada:
Granular urea remained at $870-$895/mt DEL in Western Canada, with the lower end of the range reported in Manitoba and Saskatchewan, and the higher numbers in Alberta and British Columbia.

Pakistan: The Trading Corporation of Pakistan (TCP) opened its tender May 21. While TCP got lower prices than originally expected, it did not get the 300,000 mt it wanted.
The buying house awarded Gavilon a contract for 100,000 mt at $522.86/mt CFR. Within 24 hours, TCP issued a new tender to close June 25.

All told, TCP received 14 offers in the tender. The results showed, according to sources, that the urea market is indeed on the wane. One trader put the netbacks on the Gavilon award at $490/mt FOB from an Arab producer and $475-$480/mt FOB Yuzhnyy.

Even with prices about $20 less than STC/India paid just last month, TCP still faced sticker-price shock. When TCP was last in the open market – January 2012 – it paid about $100/mt less.

Domestic producers criticized the calling of the tender, telling government agencies that if they were provided with enough natural gas, they could produce enough urea to satisfy the current application season for less.

In the end, the government decided to proceed with the tender to cover the 300,000 mt shortfall that government experts expect.

The tally of the TCP tender follows.

Offering Company Quantity (‘000 mt) Price (US$/mt CFR) Origin
  Firm Option Firm Option  
Gavilo

Ammonia

U.S. Gulf/Tampa: The new price for ammonia delivered to Tampa was set $80/mt higher for June in comparison to May, a jump from $545/mt to $625/mt, which will also have an effect on other Gulf and river ammonia prices.

Eastern Cornbelt: Sources continued to report nitrogen movement for corn sidedressing in the Eastern Cornbelt. Anhydrous ammonia pricing remained at $690-$730/st FOB Illinois terminals for prompt pull, with the upper end of the regional range pegged at the $740/st level out of Indiana terminals.

Western Cornbelt: The anhydrous ammonia market was steady at $640-$690/st FOB regional terminals for prompt tons, with the low quoted out of Nebraska terminals on a spot basis. Sources reported minimal movement to the field in late May.

California: Calamco announced an increase to ammonia pricing in California. Effective May 27, anhydrous ammonia postings will firm $50/st, moving to $705/st truck-DEL from the previous $655/st level. Aqua ammonia postings from the company will firm on that date to $190/st FOB from the previous $178/st FOB level.

Pacific Northwest: Washington sources reported some anhydrous ammonia movement on summer fallow in the northern part of the state. The ammonia market was pegged at $780-$790/st DEL in the region, though the last reference prices were quoted as high as $995-$1,020/st DEL, depending on location.

Western Canada: Sources quoted the anhydrous ammonia market unchanged at $1,209-$1,218/mt DEL in Manitoba, $1,218-$1,227/mt DEL in Saskatchewan, and $1,227-$1,253/mt DEL in Alberta.

Rain settled over much of Western Canada last week, with forecasts calling for most of Saskatchewan, Alberta, and Manitoba to get a steady dose of moisture until the weekend. With seeding nearly complete in most areas, however, and much of the region feeling parched after unseasonably warm and dry weather since March, few were complaining.

Black Sea: As soon as the new Tampa price was announced, Asian traders said the Yuzhnyy equivalent price would be $555-$565/mt FOB. But until news of a small top-off order came around, the public price was stuck in the $460s/mt FOB.

Traders cautioned, however, that using the Tampa price to estimate the Black Sea price is tricky because Tampa is now dominated more by Trinidad material than Yuzhnyy. They added, however, that that should not stop ammonia players from running the numbers just to get a sense of “where the market should be.”

Market watchers pointed to the small 4,000 mt unit sold at $560/mt FOB as evidence that the Black Sea price was moving with the Tampa price. By itself, that small sale might not have been enough to convince many others. On its heels, however, came news of 50,000 mt being sold at the same level.

The consensus is growing that not only is the price centered on $560/mt FOB, but that there is still room for the price to move up even more.

Middle East: Sources report no new spot sales because demand is outstripping supply in the region. Reportedly the Arab producers are doing all they can to fulfill the basics of their contracts with traders and end users.

The lack of spot business means the public price remains in the low $500s/mt FOB. Sources in Asia, however, say that the pricing ideas of the producers are much higher. Even buyers say they expect to see significantly higher prices once India calls and settles a tender.

Yara International ASA – management brief

Yara International ASA has appointed Torgeir Kvidal as acting CFO and Jan Duerloo as acting head of Yara Upstream. Hallgeir Storvik, CFO, and Tor Holba, head of upstream, are stepping down from their executive management positions at their own request, Yara reported, until the situation is resolved with regard to the ongoing investigation (GM March 26, p. 10) by the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim).

Økokrim officially leveled charges against Storvik and Holba on May 18 (GM May 21, p. 13), alleging suspicion of “gross corruption” resulting from an investigation that commenced in 2011 (GM April 18, 2011). Storvik and Holba will continue to work for the company, but without their former responsibilities and not as members of executive management. Kvidal, currently head of Yara’s Supply and Trade business unit, will continue to hold that position going forward. Duerloo is currently head of the Projects and Technology business unit, and he will retain this position as well.

The Council of the International Fertilizer Industry Association (IFA) – management brief

The Council of the International Fertilizer Industry Association (IFA) on May 24 approved the appointment of Charlotte Hebebrand as its new director general. Hebebrand will be the first woman to hold this position, and will replace Luc Maene, IFA’s current director general, upon his retirement on Dec. 31, 2012. Hebebrand will start working at IFA’s office in Paris on Sept. 1, 2012, before assuming the position of director general on Jan. 1, 2013.

Hebebrand is the current chief executive of the International Food and Agricultural Trade Policy Council (IPC), a think tank based in Washington, D.C. Prior to this role, she held positions at the European Commission and the Brookings Institution. She holds an M.A in International Relations and Economics from Johns Hopkins University and is a dual German and U.S. citizen.

“It is a real pleasure to work for an industry that is doing so much for food security,” Hebebrand said. “I am looking forward to meeting all of IFA’s members and working closely with them on the key issue of feeding a growing population and improving the safety, health, and environmental impact of the industry’s operations.”

“Charlotte is eminently qualified to be the next leader of our industry,” said IFA President and PotashCorp CEO William J. Doyle at IFA’s 80th Annual Conference in Doha, Qatar, last week. “She has dedicated her career to food production and understands fully the value of fertilizers.”

Maene has been IFA’s director general since 1987. During his tenure, IFA’s membership expanded dramatically, adapting to changes in global market dynamics and involving new players, in particular in Asia. Maene’s accomplishments will be celebrated during IFA’s council meeting Nov. 28-29, 2012, in Rome, Italy.

"Luc Maene has done an outstanding job leading our global association for the last 25 years,” Doyle said. “He pushed our growth to the four corners of the world by greatly expanding our membership. His human touch was greatly appreciated by everyone and we are all very grateful to him for his many years of dedicated service to the fertilizer industry."

Yara – management brief

Dr. Sebastian Braum, manager of Agronomic Services for Yara in the western U.S., has decided to resign and pursue a career opportunity in another company, effective June 1. Dr. Bill Easterwood, chief agronomist for Yara in North America, will step in during this transition.

“We wish Sebastian success in his new endeavors and thank him for his good work during the past nine years,” said Geraldo Mattioli, vice president, U.S. Western Region. “Dr. Easterwood is very knowledgeable on specialty crops and actually worked directly in California earlier in his career for WGM, before Norsk Hydro (now Yara) acquired that company. I am sure that we will continue to deliver the high level of agronomic services that our customers are used to receiving with Bill leading our efforts.”