U.S. Gulf:
New NOLA potash barge trades were reported in the $585-$605/st FOB range, up from the previous $570-$600/st FOB. Product was reported to be quoted at $625/st FOB for the next round of business.
Eastern Cornbelt:
The potash market was pegged at $605-$640/st FOB for prompt tons in the Eastern Cornbelt, depending on location, with the Cincinnati market reported at $615-$625/st FOB at midweek.
Western Cornbelt:
Potash prices ranged broadly at $590-$650/st FOB in the Western Cornbelt, depending on location and time of shipment, with the upper end reported at Caruthersville.
Southern Plains:
The Houston potash market had reportedly jumped to $625/st FOB, up $30/st from last report, with pricing at Catoosa/Inola pegged in the $625-$640/st FOB range, up from recent offers in the $575-$610/st FOB range. Intrepid’s last postings FOB Carlsbad, N.M., remained at $620/st for 60 percent white granular and $627/st for 62 percent white standard.
South Central:
The potash market had reportedly firmed to $615-$620/st FOB Memphis, $650/st FOB Little Rock, and up to $660/st FOB Shreveport, reflecting a significant increase from last report.
Southeast:
Potash was quoted at $620/st or higher FOB Wilmington for the last offers, while new pricing FOB Fairless Hills firmed to $630/st for September and $635/st for Q4 tons.
China:
The depletion of potash inventory at China’s ports has slowed in recent weeks, with current levels at 2.045 million mt, according to China Fertilizer Week. This compares with an estimate of “below 2.3 million mt” provided by Jenny Wang, The Mosaic Co.’s Vice President, Global Strategy Marketing, on Aug. 3 (GM Aug. 6, p. 15).
Reports describe China’s domestic potash demand as sluggish since late August, as industrial buying remains offseason and complex fertilizer producers adopt a “wait-and-see” attitude to potash buying. Prices of domestically-produced and imported potash are reported to have weakened as a result
Nutrien Ltd. CFO Pedro Farah, speaking at the RBC Capital Markets Global Industrials Virtual Conference on Sept. 9, said decreasing inventories in China will bring buyers to the negotiating table soon (GM Sept. 10, p. 15). According to Farah, Nutrien has had no sales to China through Canpotex.
Brazil:
The market at Paranagua tightened to $710-$760/mt CFR. Sources said the clamor for product by NPK producers continues to push up prices as limited amounts of MOP enter the ports and find their way to the inland blenders.
Rondonopolis is steady at $830-$884/mt FOB ex-warehouse despite the lack of material. Sources said one explanation is that because everyone knows there is no material, no one is making bids or offers that could artificially inflate the price. The barter rate at Sorriso remains at 100 bags of corn for 1 mt of MOP.
Russia:
January-July 2021 exports of MOP were up 42 percent, to 7.1 million mt from 4.5 million mt during the same period last year, according to Trade Data Monitor. The main buyers this year were Brazil at 1.6 million mt, China at 1.5 million mt, and the U.S. at 767,000 mt.
Brazil reported importing 1.9 million mt of MOP from Russia in January-July 2021. The 200,000 mt discrepancy could easily be seen as a bookkeeping error, said one source.
July exports of 821,000 mt were down 24 percent from the July 2020 total of 1.1 million mt. The main buyers this year were China at 245,000 mt, Brazil at 201,000 mt, and the U.S. at 129,000 mt. The Brazilian government reported July imports from Russia of 352,000 mt