All Posts from November 1, 2010

Market Watch

AMMONIA

U.S. Gulf/Tampa: The last done business for Tampa for November remains at $470/mt DEL. While there was some grumbling about only a $5/mt uptick by some sellers, nothing higher has been reported to challenge that number.

Eastern Cornbelt: The anhydrous ammonia market was tagged at $660-$680/st FOB in the Eastern Cornbelt region, with the low in Illinois and the upper end in the Indiana market. One source quoted spring prepay tons at the $670/st FOB level in the Illinois market last week.

Western Cornbelt: Anhydrous ammonia was steady at $620-$655/st FOB regional terminals, depending on location and time of delivery.

Northern Plains: North Dakota sources pegged delivered ammonia at $660-$675/st last week, with the upper end for spring prepay. Effective Oct. 14, Agrium’s ammonia postings in the Leal and Beulah sales area in North Dakota firmed to $635/st FOB and $655/st DEL. Those postings were up $20/st from Agrium’s Sept. 22 ammonia postings.

Great Lakes: Anhydrous ammonia was quoted at $670-$700/st FOB for spring prepay in the Great Lakes region, with the low reported by Wisconsin sources and the upper end reflecting reference levels FOB Lima, Ohio. One source quoted Indiana terminal pricing firmly at the $680/st FOB level for cash or spring prepay tons in late October.

Middle East: Mitsui reportedly bought 23,000 mt from PIC at $430/mt FOB late last month. The purchase, sources say, set a new benchmark for the low end of the market. Even Iran is asking $430/mt FOB.

The Mitsui-PIC deal came about, said one trader, because Mitsui’s customer – India – was no longer interested in dealing with the hassles of buying Iranian tons. The Japanese trading house has been a good middleman for the Iranians with end users who did not care about the source of the product. The only serious problem for the buyers came when they had to work out currency exchanges to avoid using U.S. dollars or euros to consummate the deal.

Once India pulled back from taking Iranian ammonia, Mitsui still had to fulfill its contract with the buyer. And that led Mitsui to the deal with PIC.

Sources say the Middle East ammonia price should remain strong for some time. Demand is high and producers all claim they have full order books through November.

The latest deal puts the market at $430/mt FOB. The problem for the producers remains that the rest of the business in the area is still formula contract deals, which are much lower.

Black Sea: Sources report a steady outflow of material from Yuzhnyy.

The industry seems to be waiting to see what happens in the U.S. fall application season. Once ammonia and DAP start seriously moving from storage to fields, demand is expected to go up – and with it, the price.

European demand also remains steady for now.

The lack of serious pressure on the supply side is helping keep prices steady.

Asia: Mitsubishi will be shutting down its Indonesian operations beginning the first week of December for a routine maintenance turnaround. The plant should be shut down for about a month. Sources say Mitsubishi is lining up replacement tons for the period the plant will be down.

Demand throughout Asia remains strong. South Korean and Taiwanese buyers continue to request as many tons as their suppliers can provide.

UREA

U.S. Gulf: Prices last week reportedly began as low as $350/st FOB and shot up throughout the week to as high as $362/st FOB. While some thought the higher numbers were likely forward, others said they were for November.

Why the uptick? Many cited both the continued strength in commodity markets, as well as firm-to-higher international urea numbers.

Eastern Cornbelt: Granular urea was steady at $390-$420/st FOB regional terminals last week, with the low in Illinois on a spot basis and the upper end in the Ohio market.

Western Cornbelt: Granular urea was unchanged at $385-$410/st FOB regional terminals, depending on location and time of delivery, with the low reported in southern Missouri for prompt tons. One Iowa source tagged the dealer market last week at $390/st FOB.

Northern Plains: The granular urea market was quoted at $395-$400/st FOB the Twin Cities for prompt tons, with spring prepay in the $410-$415/st FOB range. North Dakota sources tagged the urea market at $425/st FOB Carrington, with delivered tons in a broad range at $440-$480/st, depending on location and time of delivery.

Effective Oct. 14, Agrium’s granular urea postings firmed to $425/st FOB North Dakota terminals at Alton, Carrington, Colfax, Scranton, and Grand Forks, and $430/st rail-DEL in Minnesota and the Dakotas. Those levels reflected a $10/st increase from Agrium’s Sept. 22 list prices.

Great Lakes: Granular urea was quoted at $410-$425/st FOB in the region, with the low reported by Wisconsin sources and the upper end in the Michigan market. One Wisconsin source quoted delivered urea at the $419/st level last week. Effective Oct. 14, Agrium’s granular urea posting firmed to $430/st rail-DEL in Wisconsin, up $30/st from the Sept. 13 reference price.

Northeast: Granular urea pricing in the Northeast was up from last report at $385-$395/st FOB in the region. The upper end of the range was quoted as the dealer reference price FOB Philadelphia. One Pennsylvania contact also reported a $390/st DEL urea price last week.

India: The STC tender closed last week at prices not as high as many expected, but still high enough to cause the Indians to look closely at the offers.

The lowest delivered offer came from Dreymore at $362.75/mt CFR. That put the price about $20 higher than the lowest offer in the MMTC tender in September. The final prices in the MMTC tender were $346.90/mt CFR for east coast delivery and $348.50/mt CFR for west coast unloadings.

Sources say STC started leaning on suppliers as soon as the tender closed to try for prices below $360/mt CFR. The most likely scenario is that STC will get a dollar or two shaved off the lowest offer.

Three companies offered their own short-term validity dates. Keytrade and Kisan both offered with validity dates of Oct. 28. Agora closed its offer Oct. 29. The prices from these three houses ranged from $365.50/mt CFR to $385/mt CFR, with a total of 150,000 mt in firm offers.

One trader said unless these companies are willing to drastically drop their prices – an unlikelihood, he said – they will not be part of the final consideration and counter bids that are expected to take place either over the weekend of this week.

All told, about 1.3 million mt were presented in firm offers. An additional 460,000 mt were presented in sellers’ options. The tally from the tender follows.

Industry sources said India is short 1.2-1.5 million mt for this season.

One trader noted that before STC can commit to a purchase it needs the approval of the Department of Fertilizer and the finance ministry. The rising price of urea is a growing concern to both ministries. The finance people are not only concerned with the price that needs to be paid, but also the higher subsidies it will have to shell out to protect local farmers.

The bean counters in the government have not forgotten how in 2008 the country almost went bankrupt because of the subsidies that had to be paid to cover record-high prices for imported urea. They remain nervous as the prices edge upward this year.

Pushing up against the Indians is the Nov. 5 national holiday of Diwali. Sources said the STC team will need to nail down their counterbids and agreements with suppliers quickly.

One trader even talked about the potential of STC just walking away from the tender and not issuing any awards. The problem, said one trader, is that the country will still need the urea – and some of the supplies will have dried up.

Sources report that Chinese producers are cutting back on production. In addition, rumors are coming out of Beijing that the government may alter its export policy before the end of the year.

The Indonesian government is also requiring that all urea awarded in recent selling tenders be shipped out by the end of November.

All told, no supplier of urea is looking at a price reduction in the near future.

The most likely scenario, one trader said, is that STC will take a few cargoes totaling a couple hundred thousand tons. That would leave the place open for IPL or MMTC to call another tender for late-November to early January delivery.

Middle East: The three Arab producers that offered in the STC/India tender repeated the practice of offering token tonnage. What was not repeated, however, was an ever-rising price.

The offers in the most recent Indian tender were more than $25/mt down from the previous tender.

In the September MMTC tender Sabic and Qafco offered material at $389-$390/mt FOB. In the STC tender that closed Oct. 27, these same companies offered at $362-$363/mt FOB.

One trader noted that the offers were closer to the last reported bit of business from the region.

Sources say a deal in the low $350s/mt FOB was done a bit more than a week ago.

Industry observers are calling the prilled and granular market at parity again, based on the offers in the STC tender and from talks with Arab producers.

One trader said that the producers are not differentiating between the two types of urea in their talks with traders and buyers.

No one could point to a deal higher than $360/mt FOB, but it appears that is the new ceiling for the market. At the same time, nothing under $350/mt FOB seems to be around.

The best bet for the market at this time is $350-$360/mt FOB for prills and granular.

Even as the Arab Gulf remains relatively stable – largely because of the contract orders – the Egyptian price is firming in the upper $370s/mt FOB.

While few of the tons from the Arab Gulf and Egypt seriously compete with each other, sources often look to the pricing differential for guidance on where the price in one area should be.

Black Sea: The offers in the STC/India tender show a Yuzhnyy market spread of $337-$352/mt FOB.

Asian sources accept prices in the upper $330s/mt and the low $340s/mt FOB – but dismiss the $352/mt FOB as too high for a real price.

One trader noted that perhaps the highest price might be “fudged” by playing with the delivered and freight prices.

By and large, the market seems to have settled at $335-$345/mt FOB – but with room to grow.

China: Reportedly the government has made it clear to the urea producers that they should not be anxious to send urea to the ports.

Sources say the rail lines and ports are congested trying to move valuable imports such as iron ore and coal out of the ports and into industrial centers. Incoming ships are getting priority berthing rights, while vessels waiting to load exports – notably urea and DAP – are being forced to wait.

At the same time, producers are beginning to cut back on production. One trader noted that some factories are planning to cut back to 60-70 percent of production soon.

Rumors are now coming out of Beijing that the government may change its export policy before the end of the year.

Sources speculate that the change may be an incremental increase in the export duty from the current 7 percent to 10 percent.

This increase would actually be a return to the “off-season” export duty China imposed a couple of years ago.

The move would help slow down some exports because of the higher cost.

If the duty was the only thing hitting exporters, sources say there would be few problems. But China is also under pressure to revalue its currency.

If the government does revalue the yuan, sources say the export price of urea will go up accordingly.

It is the combination of a higher duty and a revalued yuan that has some traders nervous.

There is still no indication what Beijing will do about its general export policy in 2011. For now, sources are still betting that the duty will go up to 110 percent Jan. 1.

Indonesia: Asian sources expect another tender from a urea producer in the next week or so.

In the meantime, producers are under pressure from the government to move out the tons already sold. A trader noted that the government seems to want to get a clear handle on what is committed to export. As a result, it is pushing the producers to move out all sold tons by the end of November.

Any subsequent tender would have a November-December shipping time.

One source said the government apparently wants to make sure there are no carryover tons into 2011. All of the export allocations for 2010, along with the urea sold under those allocations, must be used and shipped out by the end of the year.

In a situation that resembles bureaucracies around the world, sources say that unless the producers can move all the tonnage allocated for export in 2010, their 2011 export permits will be correspondingly lowered.

South Korea: Apparently the North Koreans are desperate for more rice and fertilizer. During family reunification talks last week, South Korean media report North Korean negotiators told the delegation that reunification would depend on the South reinstating its food and fertilizer aid program.

In past years, South Korea has sent upwards of 600,000 mt of urea and NPKs to North Korea through the Red Cross. The aid package ended earlier this year when the government in Seoul blamed North Korea for an attack on a South Korean naval vessel.

In a reversal of the tactics of South Korea, North Korean delegates said reunification would only restart once the South sends food and fertilizer.

In the past, the South held back its assistance until North Korea agreed to visits of family members separated since the Korean War, almost 60 years ago.

Now the North is holding back its agreement for more family visits.

“If it really wants aid, the North should stop its disguised peace offensive and take sincere steps,” a Ministry official told Korean media. Among the sincere steps the South wants the North to take is an apology for the naval attack.

Negotiators left the talks without resolving any of the issues on the agenda. Talks are slated to resume later this month.

Pakistan: The government claims there are ample stocks of urea and local production to meet demands of 3.0 million mt during Rabi season (Oct. 2010 to March 2011). It says the country has an opening balance of 0.835 million mt of urea while production would be around 2.6 million mt, making stocks of 3.5 million mt available against an expected consumption of 3 million mt.

Engro Chemical Pakistan Ltd. (ECPL) expects its $1 billion New Daharki plant to be commissioned within the “next few days.” Production would start in December with a production capacity of 1.3 million mt/y.

Bangladesh: The government plans to take 1.681 million mt of urea during the current fiscal year 2010-11 (July-June) through state-to-state deals, international tenders, and from Karnaphuli Fertilizer Co. (KAFCO), located in Bangladesh. The breakdown includes about 481,000 mt of urea that will be procured through international tenders, while 600,000 mt each will come from KAFCO and through state-to-state deals (Qatar 300,000 mt, Saudi Arab 200,000 mt, and UAE 100,000 mt).

Some 200,000 mt of urea is expected to arrive by November.

The government set a demand target of urea at 2.831 million mt for the current year, showing a sharp drop in targeted demand compared to the previous year’s target, when it was 2.951 million mt. The government is hoping that domestic production can make up the difference; however, this is problematic as domestic production has been crimped by natural gas shortages. The Jamuna Fertiliser Factory Ltd. and Chittagong Urea Fertiliser Factory Ltd. (CUFL) are currently facing gas shortages, as the government shut them several months ago to divert gas to the power plants. The government has recently resumed gas supply to CUFL, but at a minimal level.

NITROGEN SOLUTIONS

U.S.Gulf: The market continues to be called $280-$285/st FOB ($8.75-$8.91/unit).

Eastern Cornbelt: The UAN market remained at $10.31-$10.89/unit FOB regional terminals, with the low reported out of spot river locations in Illinois. Sources pegged the inland terminal market for UAN-28 at $300-$305/st ($10.71-$10.89/unit) FOB in Indiana and Ohio for spot tons.

Western Cornbelt: The UAN-32 market remained at $320-$335/st ($10.00-$10.47/unit) FOB regional terminals, with the low in southern Missouri. The dealer market in Iowa was generally quoted at the $10.30/unit FOB mark.

Northern Plains: UAN-28 was quoted at $300-$310/st ($10.71-$11.07/unit) FOB in Minnesota, depending on location and time of delivery. Delivered UAN-28 was quoted at $315-$335/st ($11.25-$11.96/unit) in North Dakota, with the low for prompt tons and the upper end for spring prepay.

Great Lakes: Michigan contacts pegged the UAN-28 market at $305-$310/st ($10.89-$11.07/unit) FOB. In Wisconsin, UAN-32 was quoted at $350/st ($10.94/unit) FOB and $360/st ($11.25/unit) rail-DEL for spring. Another source quoted rail-delivered UAN-32 at the $355/st ($11.09/unit) level in Michigan.

Northeast: The UAN-30 market was pegged at $290-$300/st ($9.67-$10.00/unit) FOB, depending on time of delivery, with the low reported for spot tons on a prompt basis. One source quoted spring prepay last week at $295/st ($9.83/unit) FOB Philadelphia and $300/st ($10.00/unit) FOB Baltimore. The UAN-32 market out of tanks in upstate New York was pegged at a solid $10.75/unit FOB.

One source quoted the UAN-32 vessel market at $315/mt CFR for the last done business, with asking prices now at the $330/mt CFR level.

AMMONIUM NITRATE

U.S. Gulf: The last done business continues to be called $300-$302/st FOB; however, sellers are said to be eyeing much higher numbers for forward cargoes.

Western Cornbelt: Ammonium nitrate remained at $330-$340/st FOB in the region.

AMMONIUM SULFATE

Eastern Cornbelt: Granular ammonium sulfate remained at $235-$240/st FOB in the region.

Western Cornbelt: Regional sources quoted the dealer market for granular ammonium sulfate at $230-$240/st FOB in late October.

Northern Plains: Minnesota contacts quoted granular ammonium sulfate at $220-$240/st FOB last week, while delivered tons were tagged at $260-$265/st in North Dakota. Effective Oct. 13, Agrium’s granular ammonium sulfate posting moved to $260/st rail-DEL in Minnesota and North Dakota.

Great Lakes: Granular ammonium sulfate had reportedly firmed to $235-$240/st FOB in the region. Effective Oct. 13, Agrium’s granular ammonium sulfate posting moved to $260/st rail-DEL in Wisconsin, up $10/st from the company’s Sept. 13 posting. Ammonium thiosulfate (12-0-0-26) postings from Tessenderlo Kerley firmed on Oct. 2 to $270/st FOB Webberville, Mich.

Northeast: Granular ammonium sulfate was steady at $200-$205/st FOB and $220/st DEL in the region.

PHOSPHATES

Central Florida: Last week, Mosaic announced a positive development regarding its disputed permit to expand its South Fort Meade Mine into Hardee County, Fla. The company said it had reached an agreement with the Sierra Club and others who obtained an injunction from the federal court in Jacksonville to mine about 200 acres of the more than 10,000 acres it sought in the permit, in exchange for not mining on about 40 acres – including a little more than 14 acres of wetlands – that will be preserved. That will make it possible to mine for around four months after it restarts operations, which will take about a month. The agreement was subject to court approval.

Mosaic’s processing plants were not slowed from their feverish pace of production, because the company was using its rock reserves and supplementing that with rock from other mines and Peru.

Meanwhile, Mosaic was able to find enough extra to make relatively prompt sales of railcars last week at a price of $545/st FOB, which was about $5/st FOB higher than its previously posted price of $540/st FOB. Its new posted price was $550/st FOB.

A trader noted that railcars were extremely hard to find, and trucks were being used to haul material to distant locations. The trader sells into the Eastern Cornbelt and noted farmers were putting large quantities of phosphate on the ground – far more than in the past few years. The reason was fairly simple: farmers were making much more money this year on their corn crops, and it made more economic sense to spend it on their businesses than pay the extra taxes. That won’t hurt the phosphate industry one bit.

The most active period of the hurricane season was coming to a close last week, and still the state had avoided any direct hits. No one was complaining except surfers, who miss the big waves.

Last week, CF’s price for DAP was $535/st FOB, but it had nothing available to sell until late this year or early next year. Mosaic’s posted price was $550/st FOB, but it had little available until late December and January. MAP was bringing a premium of $10/st FOB. Based on posted prices – since nothing else was available – the Central Florida DAP price range last week was $535-$545/st FOB. Small lots from traders could cost $5-$10/st FOB more. PCS was making sales at “competitive prices.” The price from Agrifos for truck sales was $580/st FOB, and rail – if available – was $575/st FOB. The company had no MAP available for sale.

U.S. Gulf: The last big rush on the river system was underway last week and will continue for another week or so, as farmers and dealers were both seeking as much phosphate as they could possibly get. While the Mississippi River upriver closing was already passed the Oct. 15 date, it was still possible to take barges as far north as Albany. NOLA barges able to make it there before the middle of November were bringing a premium.

Numerous sources said most of the product being sold was going to the field and not bins, because farmers were eager to put as much phosphate onto the ground as possible before winter weather sets in. That was for two reasons: first, farmers have skimped on phosphate for the past two-to-three years; and second, it will reduce the amount they will have to pay in taxes this year.

“Dealers are learning there’s not a lot of product around,” a trader said. “Dealers are buying for winter fill, but there’s a lot of empty space (in bins) and a lot won’t be full by spring.”

Although much more phosphate has been imported into the country this season than normal, it appeared it was quickly being absorbed into the system and was having only a minimal impact on prices – perhaps keeping prices from rising faster and more than they have.

In areas where the need was greatest and product in limited supply, warehouse prices were rising rapidly – as high as $630-$635/st FOB. In general, terminal prices were over $600/st FOB, with only a few exceptions as low as $590/st FOB.

The reason for the robust phosphate market was primarily the price of corn, but wheat also. Corn for December 2010 was over $5.75/bushel and $5.40/bushel for December 2011. Wheat was running in the neighborhood of $7/bushel. Farmers were sporting new tractors and new equipment.

CHS was said to be bringing a split vessel of DAP/MAP into Galveston in December and planned to rail the entire cargo to Nebraska at a price of around $610/st DEL.

Last week, the NOLA DAP barge price range was unchanged at $558-$565/st FOB based on actual trades. It was interesting in that it appeared prices would sag early in the week, but regained strength. Asking prices for forward sales late last week were in the range of $565-$570/st FOB NOLA, but some lower prices may be available from smaller traders. MAP, where available, was bringing a premium of about $10/st FOB last week.

Eastern Cornbelt: Eastern Cornbelt sources continued to quote the DAP market at $605-$625/st FOB regional warehouses for any available tons. One source quoted a $595/st FOB level for the last pricing quote he received, but added that tons were no longer available at that level last week. MAP remained in the $625-$650/st FOB range, but one source said there was “none in sight” in his location last week.

10-34-0 was also in very tight supply, with sources quoting the market at $475-$480/st FOB for any available tons.

Western Cornbelt: DAP remained in a broad range at $600-$625/st FOB. An Iowa source reported DAP at $605/st FOB and MAP at $625/st FOB for allocated tons last week. The upper end of the MAP market was pegged at the $650/st FOB mark in western Iowa.

10-34-0 was quoted at $455-$465/st FOB, with the low in Nebraska and the upper end in the Iowa market. Tons remained very tight.

Effective Nov. 1, Agrium’s phosphoric acid postings will firm to $1,000/st DEL for both SPA and MGA in Iowa, Nebraska, Colorado, Kansas, New Mexico, Oklahoma, Texas, and Wyoming. A move to $1,075/st DEL is slated for Dec. 1.

Northern Plains: The DAP market was quoted at $595-$615/st FOB in Minnesota. MAP was $625-$640/st FOB North Dakota terminals. Minnesota sources said no MAP was available on the spot market last week.

North Dakota sources pegged the 10-34-0 market at $505/st DEL from Canadian shipping points, up significantly from last report. Effective Nov. 1, Agrium’s phosphoric acid postings will firm to $1,000/st DEL for both SPA and MGA in the Dakotas.

Great Lakes: DAP was pegged at $625-$635/st FOB in the region for very limited tons, with the low in Wisconsin. One Wisconsin source also quoted delivered DAP at the $635/st level last week. MAP was tagged at $640-$650/st FOB, where available.

The 10-34-0 market was also in extremely tight supply, and had reportedly firmed to $480-$490/st FOB. One contact said he expects the market to firm to $500/st FOB or higher by November.

Northeast: Dry phosphate prices were difficult to come by due to low inventories and lack of new sales. MAP was quoted in a broad range at $645-$666/st FOB, with the low reported by Pennsylvania sources on a spot basis. The upper end of that range was also quoted for delivered MAP tons last week. The DAP market was quoted at a nominal $625- $635/st FOB in the region.

10-34-0 had firmed to $455/st FOB terminals in upstate New York.

Western U.S.: Effective Nov. 1, Agrium’s phosphoric acid postings will firm to $1,000/st DEL for both SPA and MGA in Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, and Washington. The company has an increase to $1,075/st DEL scheduled for Dec. 1.

U.S. Export: With the domestic markets running at a premium to export, U.S. companies were in no hurry to make new offshore sales last week. Actually, the reverse has become true – offshore phosphate producers were selling into the North American markets.

Argentina was seeking phosphate last week, but a U.S. producer said Russian or Moroccan product would be the likely beneficiary. Brazil was also said to be showing interest, but would probably turn to the same sources as Argentina.

With no new sales last week, the export DAP price was $580/mt FOB.

Bangladesh: The government has set demands/import targets for TSP and DAP at 560,000 mt and 340,000 mt, respectively, for the current fiscal year 2010-11 (July-June).

Pakistan: The government has estimated that 1.6 million mt of DAP would be available against requirements of 0.6 million mt during Rabi season (October 2010 to March 2011).

POTASH

Eastern Cornbelt: Effective Oct. 25, granular potash postings from PCS Sales firmed to $515/st FOB Maumee, Ohio, Indiana terminals at Burns Harbor, Delphi, Indianapolis, Jeffersonville, and Walton, and Illinois terminals at Byron, Casey, Colfax, Danville, Granite City, Marseilles, Seneca, and Springfield.

Sources continued to put the dealer market for potash at $465/st FOB on the low end from resellers, but finding any potash tons for sale for prompt delivery was reportedly difficult. One Illinois source said granular tons could be booked for $495-$500/st DEL for December delivery, and another said Illinois river terminal pricing had generally firmed to the $515/st FOB level or higher for any new sales.

Western Cornbelt: Effective Oct. 25, granular potash postings from PCS Sales firmed to $515/st FOB Ft. Dodge and Waterloo, Iowa, and St. Louis. One Iowa source said dealer pricing was still available on a limited basis at $465/st FOB, but tons were extremely tight. Another contact said potash and MAP were “not to be found” in late October. Several sources said potash barges were as high as $465-$470/st FOB the U.S. Gulf for new business.

Northern Plains: Minnesota sources quoted the potash market at a firm $500/st FOB last week, where available. Granular potash tons FOB Saskatchewan mines had reportedly firmed to $475/st at Rocanville, according to Dakota sources.

Southern Plains: Effective Nov. 1, potash postings from Intrepid Potash FOB Carlsbad, N.M., will firm to $480/st for 60 percent standard; $482/st for 62 percent standard; $485/st for 60 percent granular and 62 percent fine standard; and $493/st for 62 percent granular. Those levels reflect a $50/st increase from the company’s Oct. 15 postings, and a $105/st increase from Oct. 1 postings.

Intrepid’s potash postings FOB Moab and Wendover, Utah, will move on Nov. 1 to $480/st for 60 percent standard and $485/st for 60 percent granular.

Great Lakes: Effective Oct. 25, granular potash postings from PCS Sales firmed to $517/st FOB Green Bay, Wisc., up $77/st from the Sept. 7 list price. A Wisconsin source quoted delivered potash at $498/st for December, but said no tons were available for immediate shipment.

Northeast: Potash spot quotes ranged from $450-$470/st FOB in the region, with the low reported in Pennsylvania. One source said delivered potash had firmed to $510/st to his location last week, and still higher postings were announced from producers. Effective Oct. 25, granular potash postings from PCS Sales firmed dramatically to $522/st FOB Chesapeake, Va., and $535/st FOB Baltimore.

India: Canpotex Ltd. on Oct. 28 announced the signing of a new five-year agreement to supply Coromandel International Limited (CIL), a key customer in India, with up to three million mt of Saskatchewan potash. The inaugural multi-year agreement covers the period April 1, 2011 to March 31, 2016. Canpotex will supply a minimum of 500,000 mt annually.

“This agreement confirms Canpotex’s long-term commitment to the important Indian market, and reflects the confidence our Indian partner, CIL, has in Canpotex’s ability to meet their growing potash requirements,” said Steve Dechka, Canpotex president and CEO.

Canpotex, through market development initiatives, collaborates with CIL to promote balanced fertilizer applications. “Educating farmers through field trials, crop seminars and other learning opportunities is an important aspect of our market development initiatives, and we are pleased to assist CIL with these programs,” said Dechka.

SULFUR

Tampa: The sulfur industry has been exceptionally lucky this year in that no hurricanes created problems in the Gulf of Mexico – at least not so far. That meant no problems with transportation for sulfur vessels, at refineries along the Gulf Coast, or in Florida, where their biggest customer – the phosphate industry – is located. A triple win, like a double eagle in golf.

The primary interest of the sulfur industry last week and for the next month was and will be securing arrangements for next year with their customers. Not only has the phosphate industry been hungry, but also the metals industry’s appetite for sulfur has grown. Again, that may be an indication of an improving economy, especially in the industrial sector.

Refineries were cranking up production last week. The Department of Energy reported refineries were running at 83.7 percent, up from the previous week’s 82.5 percent.

A source said transportation costs for rail were expected to rise 5 to 6 percent next year. That should not be a problem if the current boon in sulfur prices holds.

West Coast: Sulfur export prices out of California were a reflection of Vancouver. Prices at refineries out of Stockton were running about $90/lt.

Vancouver: Spot prices were in the $140-$160/mt FOB range last week, while recent contracts for the fourth quarter were in the range of $125-$145/mt. A source said efforts were being made to push the price China pays to as much as $200/mt DEL, but were still closer to $180/mt DEL.

MARKET NOTES
Pakistan: Prime Minister Yousaf Raza Gilani on Oct. 26 inaugurated the first fully automated dry bulk fertilizer and grains handling and storage terminal in Pakistan – Fauji Akbar Portia Marine Terminals (FAP) at Port Qasim. To date, Port Qasim could only accommodate dry bulk vessels of 50,000-mt capacity due to the outdated terminals and depth of the channel. But the new terminal, which was created by reclaiming 22 acres of water at a cost of US$135 million, has a 300-meter long jetty with a depth of 14.5 meters and can accommodate vessels of 75,000-mt capacity. However, due to the shallow depths of the channel at the moment, vessels of 75,000-mt capacity cannot reach this new terminal. Therefore, in order to make this possible the next step that needs to be taken by the PQA is dredging so that the larger vessels can actually reach the berth in the coming months.