U.S. Gulf:
The last done potash barge sales were put in the $680-$690/st FOB range, up from the week-ago $670-$685/st FOB.
While prices are up, this week’s new postings by Nutrien and Mosaic for $690/st FOB NOLA equivalent barges may put a lid on the NOLA market, at least as long as those prices remain on the table. With the news that BPC may be out of the market due to sanctions, one observer speculated those postings may not last too long.
Eastern Cornbelt:
The potash market remained at $715-$725/st FOB in the Eastern Cornbelt, depending on location.
Nutrien came out with January potash prices early in the week, which included $725/st FOB in the Midwest and a NOLA equivalent price of $690/st FOB. Mosaic followed at midweek with Q1 pricing offers for red potash at $690/st FOB NOLA, $720/st FOB river, and $725/st FOB inland terminals in the Midwest.
Western Cornbelt:
Potash was pegged at $710-$725/st FOB and $715-$730/st rail-DEL in the Western Cornbelt, with the low reported at St. Louis in early December. New postings from producers for Q1 tons ranged from $720-$725/st FOB in the region.
Northern Plains:
Potash FOB St. Paul was quoted at $720-$725/st FOB for Q1 tons. The last prices FOB Saskatchewan mines were reported at $690-$700/st FOB after netbacks, depending on grade and destination.
Northeast:
Potash pricing was reported in the $740-$760/st FOB range in the Northeast for Q1 tons, with the Lancaster market quoted firmly at the $750/st FOB level.
Eastern Canada:
Potash pricing for Q1 ton reportedly firmed to C$1,030/mt FOB regional warehouses earlier in the week before dropping to a reported C$990/mt FOB on Dec. 2. These prices were up from the last reported Q4 business at C$985/mt FOB.
Brazil:
Demand for MOP by blenders remains keen even as prices soften to $760-$840/mt CFR, depending on the port of discharge.
Rondonopolis was pegged at $920-$940/mt FOB ex-warehouse. The price showed some upward movement from previous weeks. Sources said concern over potential U.S. sanctions against Belarus potash companies led to the price increase.
By the end of the week, the U.S. government announced that Belarusian Potash Company is now on the sanctions list, as well as its subsidiary Agrorozkvit LLC. The U.S. government has given traders and buyers until April 1, 2022, to wind down their relations with the two companies.
From January-October 2021, Belarus exported 1.96 million mt to Brazil, making it the third largest supplier after Russia and Canada.
The barter rate for MOP remained at 112 bags of corn for 1 mt of MOP.
Thailand:
January-October 2021 MOP imports were up 22.8 percent, to 819,000 mt from 667,000 mt during the same period in 2020. The main suppliers this year were Canada at 318,000 mt and Belarus at 258,000 mt.
October 2020 imports were reported at 36,000 mt, down from the 75,000 mt received in October 2021. The latest number is the lowest amount of MOP imported so far this year.