All Posts from July 1, 2013

Urea

Black Sea, China, Eastern Canada, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Northeast, Northern Plains, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf: Granular urea barges were weaker last week, though just how weak was at issue. Some said as low as $300/st FOB, while others claimed $305/st FOB. While some called the low price forward and Chinese, others said it was prompt and Mideast.

Others maintained that the low numbers quickly sold out and the price moved up, with some claiming as high as $320-$322/st FOB. These sources were hoping for firm numbers for the end of rice season.

Still, bears in the market predicted that low international prices would drive more cargoes to the U.S. and further weaken prices.

Prills remained in short supply, and were said to be trading at $340/st FOB.

Eastern Cornbelt: Granular urea pricing had reportedly fallen to $370-$390/st FOB in the Eastern Cornbelt region, although there were few new sales to test the market in late June.

Western Cornbelt: The granular urea market was quoted at $350-$370/st FOB most regional terminals, reflecting another $10-$20/st drop. Most sources put the market out of river terminals in the Western Cornbelt at $350-$360/st FOB last week.

Northern Plains: Granular urea pricing in the Northern Plains was down from last report, with sources quoting the dealer market at $350/st FOB the Twin Cities and $380-$400/st FOB or DEL in the North Dakota market. Out of specific terminals, Dakota sources pegged urea pricing last week at $380/st FOB Carrington, N.D., and $400/st FOB Craven, S.D.

Northeast: Strong thunderstorms were reported in parts of southern New England early in the week, and sources reported unseasonably hot and humid weather throughout the region. More rain was in store for southern New England as the week advanced, with flash flood watches in effect for many areas on June 27-28.

One Pennsylvania contact said temperatures were in the 90s in his location at midweek, and crops were responding with rapid growth. Growers in upstate New York were still planting the last fields to silage corn, soybeans, and vegetable crops. As of June 24, USDA rated fully 87 percent of the Pennsylvania corn crop as good or excellent.

Granular urea pricing in the Northeast was down some $10-$15/st from last report, with the dealer market pegged at $410-$415/st FOB in the region last week.

Eastern Canada: The granular urea market was quoted at $500/mt FOB in Quebec and in tight supply. Urea pricing in the Ontario market was pegged at the $525/mt FOB level, down some $40-$50/mt from May pricing levels, but sources said volumes were down and regional suppliers were “meeting market conditions” as they encounter them.

India: The STC tender that closed June 22 showed dramatically lower prices. The winning offer of $303.33/mt CFR from Ameropa raised eyebrows and perplexed many in the industry.

The amount of material offered in the tender – about 4 million mt – and the low prices indicated for many the state of the global urea market. Even discounting the Ameropa offer, other offers were $10-$15/mt off the last tender.

The lowest offers after Ameropa were Rare Earth at 150,000 mt for $303.43/mt CFR; Transglobe at 270,000 mt for $304.10/mt CFR; Dreymore at 360,000 mt for $311.11/mt CFR; and Blue Deebaj at 150,000 mt for $311.44/mt CFR.

All told, the lowest five companies offered 1.07 million mt. Firm offers under $305/mt CFR totaled more than 500,000 mt.

Sources noted that none of the Arab producers offered their usual token amounts. One trader opined that perhaps the Arab producers did not want to indicate any concession to a market spiraling downward.

Ameropa has reportedly been given an award for the initial 70,000 mt and is pushing for a second award in a like amount. Sources report that Trans

Yara North America – Management Brief

Management Briefs

Leonard Hammer, regional sales manager for Yara North America in Fresno, Calif., is retiring on June 28 after more than 23 years with the company. Effective July 1, Jon Collison will have his Yara sales territory expanded to include California’s Central Valley and coastal areas. Collison is based in Bakersfield, Calif., and can be reached at 661.340.8495, or by email at jon.collison@yara.com. Hammer will continue to live in Fowler, Calif., and can be reached at 559.974.7298.

CF Industries Holdings Inc. – Management Brief

Management Briefs

CF Industries Holdings Inc. reports that Adam Hall has joined the company as vice president, corporate development. Previously, he has served as executive director, corporate strategy & development, with Bunge Ltd. He has also worked for Bain & Co., LEK Consulting, and as a corporate attorney with the law firm of Clayton Utz in Perth, Australia. Hall earned undergraduate degrees in law and commerce from the University of Western Australia, and an MBA from Harvard Business School.

Sulfur

Market Watch, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa: Sources were not expecting a quick settlement for third-quarter molten sulfur prices delivered to Tampa.

Several things will interfere with phosphate producers and sulfur suppliers getting together, with sources citing the short Independence Day week, the upcoming Calgary Stampede, and the big industry gathering in San Antonio for the Southwestern Fertilizer Conference.

Sources said it is entirely possible there could be discussions in San Antonio, but likely not a settlement.

One of the biggest factors that will come into play during negotiations is the weak world market. Prices in Vancouver have fallen to around $100/mt FOB, which is not attractive to sellers there. Phosphate producers will have to walk a fine line to avoid cutting off too much of the supply from Canada while still getting a great deal.

The second-quarter price was $155/lt delivered to Tampa.

U.S. Gulf: The Gulf price range was $100-$110/mt FOB.

Vancouver: The situation for sulfur suppliers at Vancouver was difficult, and that may be the case for a few months, depending on what happens with the third-quarter molten sulfur price at Tampa.

The Vancouver export price was hovering around $100/mt FOB last week.

West Coast: Prices on the West Coast were in the $98-$108/mt FOB range. The West Coast has been hit by the same factors as Vancouver due to its export orientation.

Benelux: The price range for the second quarter was $175-$185/mt, but prices will likely fall during the third quarter.

ADNOC: The ADNOC price for June was $140/mt FOB. Sources said the recent prices in the Arab Gulf region were in the sub-$100/mt FOB range. The posted price will undoubtedly fall at the beginning of this month.

Potash

Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Potash Muriate, U.S. Gulf, Western Cornbelt

U.S. Gulf: Barges were reported to be available within the $390-$405/st FOB range. While recent trades were reported at $405/st FOB, others said July/August product is available at the lower numbers.

Eastern Cornbelt: Potash remained at $445-$455/st FOB regional warehouses in the Eastern Cornbelt.

Western Cornbelt: The regional potash market was steady at $445-$455/st FOB in late June, with little new business to test the market.

Northern Plains: Granular potash pricing out of regional warehouses in the Northern Plains had reportedly slipped to $435-$445/st FOB, with delivered tons at $450-$455/st in the Dakotas, depending on location.

Potash pricing to U.S customers FOB Saskatchewan mines was reported in the $420-$430/st range, depending on grade and producer.

No summer fill programs were circulating for potash yet last week.

Northeast: The potash market remained at $455-$458/st FOB Baltimore and $460-$470/st rail-DEL in the Northeast.

Eastern Canada: The potash market out of Eastern Canada warehouses remained at $525/mt FOB.

The dealer reference price for sulfate of potash (SOP) was quoted at the $830/mt FOB level in Ontario.

The K-Mag market was unchanged at $535-$565/mt FOB in the region.

Phosphates

Central Florida, Eastern Canada, Eastern Cornbelt, Market Watch, Middle East, Northeast, Northern Plains, Phosphate Rock, Triple Superphosphate, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida: With the crops pretty much planted in all of the areas normally served by rail from Central Florida, spot prompt sales of DAP and MAP were nonexistent last week. If a dealer was a little short on phosphate or any another fertilizer last week, he used trucks to pick up whatever was needed from local warehouses.

The price range for Central Florida DAP was unchanged at $435-$450/st FOB. Large customers were receiving the best prices.

List prices remained considerably higher, with Mosaic referenced at $465/st FOB for rail and $480/st FOB for trucks, and CF Industries posted at $520/st FOB. However, both companies were selling at below their posted prices. PCS Sales was selling at market prices out of Aurora and White Springs.

MAP continued to bring a $20/st premium over DAP at Central Florida.

U.S. Gulf: Last week was not a great time to be selling NOLA DAP or MAP barges. The planting season was over, and dealers were scraping the last of the product from their bins so they can end the season empty.

The general trend last week for phosphate products was that prices were higher at the beginning and gradually fell off as the week continued. Not a lot was likely to happen until after the Southwestern Fertilizer Conference on July 20-24.

One source said his offer to sell at $425/st FOB was rejected by a buyer who wanted to pay $420/st FOB. He said he saw no point at selling below $425/st FOB and kept the barge.

MAP prices for future delivery were about to take a tumble as product from North Africa, Mexico, and Russia was heading to the U.S. The forward price could fall to $430/st FOB or lower, at least for Russian product, but lower for others as well. The vessels were purchased by Koch and EuroChem, sources said.

Corn prices for July were at $6.6725/bushel last week, down from $6.7325/bushel a week earlier. Corn for December 2013 was at $5.385/bushel, down from $5.605/bushel at last report, while corn for December 2014 had fallen to $5.4975/bushel from the previous week’s $5.705/bushel.

Soybeans for July were at $15.485/bushel, up from $14.975/bushel a week earlier. Soybean prices for November 2013 had fallen to $12.7525/bushel from $12.85/bushel the previous week, while soybeans for November 2014 were posted at $12.4225/bushel last week, down from $12.5825/bushel a week earlier.

Wheat prices for July 2013 dropped to $6.635/bushel last week from $7.005/bushel the week before, while wheat for July 2014 fell to $7.1575/bushel from the previous week’s $7.48/bushel. The wheat price for July 2015 was posted at $7.325/bushel last week, down from $7.605/bushel at last report.

The NOLA DAP barge range last week changed from the previous week’s $418-$430/st to $418-$427/st FOB, based on a fairly small number of trades. MAP was less available and was quoted in the $440-$455/st FOB range, with the lowest price for Russian product and the highest for domestic.

Eastern Cornbelt: The DAP market remained at $468-$490/st FOB in the Eastern Cornbelt, with the low in Cincinnati and the upper end out of inland warehouses in the Ohio market. MAP was $20/st higher than DAP.

Sources continued to quote the 10-34-0 market in the $525-$550/st FOB range.

Western Cornbelt: DAP was quoted in the $460-$480/st FOB range in the region last week, down roughly $20/st from last report. MAP was $20/st higher than DAP, where available.

10-34-0 pricing remained in a very broad range at $450-$525/st FOB in the Western Cornbelt, with the low in Nebraska and the upper end in Iowa and Missouri.

Northern Plains: The DAP market remained flat at $460/st FOB Minneapolis, with MAP reported in the $480-$485/st FOB range at that location. North Dakota sources reported some dealer-to-d

Ammonium Sulfate

Ammonium Sulfate, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt: Granular ammonium sulfate remained at $375-$405/st FOB in the Eastern Cornbelt region. The ammonium thiosulfate market was unchanged as well at $355-$360/st FOB.

Western Cornbelt: Granular ammonium sulfate was quoted at $355-$375/st FOB in the Western Cornbelt region. One Iowa contact put the common dealer price last week at $360/st FOB in his trade area.

The ammonium thiosulfate market remained at $325-$360/st FOB, depending on location.

Northern Plains: Granular ammonium sulfate pricing in the Northern Plains was down about $20/st from last report, with the dealer market quoted at $340-$350/st FOB in Minnesota and $385/st DEL in the Dakotas.

Effective July 1, Agrium’s granular ammonium sulfate posting in North Dakota, Minnesota, and Wisconsin will drop to $345/st DEL.

Ammonium thiosulfate remained at $360/st FOB and roughly $370/st DEL in the region.

Northeast: Sources continued to quote the granular ammonium sulfate market at $400-$410/st DEL in the Northeast, with terminal pricing pegged at $365/st FOB Hopewell, Va., $405/st FOB Philadelphia, Penn., and $410/st FOB East Liverpool, Ohio.

Eastern Canada: The granular ammonium sulfate market in Eastern Canada was down from last report, with sources quoting the dealer market at $450-$480/mt FOB in the region.

Ammonium Nitrate

Ammonium Nitrate, Eastern Canada, Market Watch, U.S. Gulf, Western Cornbelt

U.S. Gulf: Ammonium nitrate barge prices were finally being tested, according to sources who were now calling them $330-$340/st FOB or lower. Players suspected the next trades would be in the $325-$330/st FOB range.

Western Cornbelt: Ammonium nitrate was unchanged at $400-$405/st FOB in the region, with the low reported in Iowa and the upper end in Missouri on a spot basis.

Eastern Canada: The ammonium nitrate market had reportedly slipped to $455-$478/mt FOB in Eastern Canada, although sources reported minimal new business to test the market.

Nitrogen Solutions

Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf: New trades last week were being indicated in a broad range – $222-$240/st FOB ($6.94-$7.50/unit). Buyers maintain that recent exports have netted back to NOLA below $220/st FOB, and argue that domestic prices should reflect those trades.

Producers have remained stoic, with no official fill programs yet on the market. Speculation was that once they were announced they would be in the $235-$240/st FOB range.

Eastern Cornbelt: The UAN-28 market remained in the $305-$330/st ($10.89-$11.79/unit) FOB range in Ohio, with the low in Cincinnati and the upper numbers out of inland terminals. Illinois sources quoted the UAN-32 market at $355-$365/st ($11.09-$11.41/unit) FOB most terminals for prompt pull.

Western Cornbelt: UAN-32 had reportedly slipped to $345-$365/st ($10.78-$11.41/unit) FOB regional terminals in the Western Cornbelt, with the lower numbers reported on a spot basis in all three states last week.

Northern Plains: The UAN-28 market was tagged at $320/st ($11.43/unit) FOB the Twin Cities, down roughly $20/st from last report. Delivered tons in North Dakota were quoted in the $365-$370/st ($13.04-$13.21/unit) range last week, with the low end of that range also quoted on an FOB basis out of Jamestown, N.D.

Northeast: Post-spraying was underway at full tilt in the Northeast, and sources reported brisk fertilizer movement for sidedress applications. One source said spraying activities are likely to continue at a steady pace throughout the summer as growers opt for heavy double-crop soybean plantings after the winter wheat harvest.

Sources reported a sliding market for UAN in the region. Dealer pricing FOB Baltimore, Md., was tagged at the $320/st ($10.00/unit) level for UAN-32 and $300/st ($10.00/unit) for UAN-30, down roughly $15/st from last report.

Out of terminals in upstate New York, the UAN-32 market was quoted at $368/st ($11.50/unit) FOB last week, down some $25-$30/st from spring pricing levels.

Eastern Canada: The UAN-28 market was pegged at $350-$360/mt ($12.50-$12.86/unit) in Ontario, down some $15/mt from last report. UAN-32 pricing was also lower at the $400-$411/mt ($12.50-$12.84/unit) FOB level for spot tons in the region.

One dead in Indiana grain explosion

News, News Briefs

Union Mills — A grain silo explosion Monday, June 24, killed a worker at Union Mills Co-op. Initial reports fingered fertilizer as the cause, but sources later clarified that it was in the grain silo and that fertilizers were stored at a separate location. The victim was identified as James Swan, 67, of Union Mills. Union Mills Co-op, in northwestern Indiana about 50 miles southeast of Chicago, is owned by Co-Alliance, an Avon, Ind.-based farmer-owned supply and marketing cooperative serving rural communities in Indiana, Ohio, and southern Michigan.

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