All Posts from November 11, 2013

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, Market Watch, Middle East, Southeast, Southern Plains, Tampa, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa: The Tampa market remained quiet last week. Mosaic did give some guidance on its future needs, telling analysts last week that after ammonia supply contracts with CF kick in (GM Nov. 4, p. 1) that it may still likely need 300-350,000 mt/y of ammonia from the spot market.

December NYMEX natural gas closed Nov. 7 at $3.519/mmBtu, down slightly from the week-ago $3.581/mmBtu.

Eastern Cornbelt: October went out like a lion in parts of central Indiana and northern Ohio, where powerful storms produced damaging winds and heavy rainfall, causing widespread power outages.

Scattered rains were in store during the first days of November for other parts of the Eastern Cornbelt, but growers were able to steadily peck away at the corn and soybean harvest. As of Nov. 3, 88-92 percent of the regional soybean crop was harvested, while the corn harvest stood at 64 percent complete in Ohio, 74 percent in Indiana, and 83 percent in Illinois. Harvest was tracking ahead of the five-year average for both crops in all three states.

Winter wheat planting was also nearly finished, with approximately 91-97 percent of the regional crop seeded by Nov. 3. That pace, too, was ahead of the five-year average.

The anhydrous ammonia market was unchanged at $550-$560/st FOB in Illinois and $560-$570/st FOB in Indiana.

Western Cornbelt: The anhydrous ammonia market in the Western Cornbelt was unchanged at $510-$525/st FOB in Nebraska, $525-$540/st FOB in Iowa, and $550/st FOB Palmyra, Mo. Fertilizer movement continued to be described as “a little slow” in the region, according to one Iowa contact last week.

A powerful storm dropped up to 10 inches of snow in parts of northwest Nebraska last week, and also blanketed areas of South Dakota and Minnesota with similar amounts. The system brought rainfall to parts of Iowa, which delayed harvest activities.

Harvest progress in the region continued to equal or surpass the five-year average for corn and soybeans, however. As of Nov. 3, 82 percent of the Missouri corn crop was in the bin, compared with 71-75 percent in Nebraska and Iowa. Soybean growers had fully 95-97 percent of the crop harvested in Iowa and Nebraska by that date, compared with 64 percent in Missouri.

Missouri’s cotton harvest continued to trail the five-year average considerably, however, with 46 percent of the crop picked by Nov. 3. USDA rated 46 percent of the Missouri cotton crop as good or excellent last week.

Missouri growers were also plugging away on winter wheat planting in early November, with approximately 64 percent of the crop seeded by Nov. 3. Nebraska’s wheat crop was fully planted by that date, USDA reported.

Southern Plains: The ammonia market in the Southern Plains remained at $460-$480/st FOB regional production points for fall tons, with the pipeline terminal market in Kansas pegged at $495-$510/st FOB.

Heavy rains swept across central Texas on the last day of October, while a strong Pacific storm brought cold temperatures and snowfall to northern New Mexico in early November.

The U.S. Drought Monitor continued to show severe to extreme drought conditions in parts of northern Texas, eastern Colorado, and western Oklahoma and Kansas last week, but fall rains have significantly lessened the areas of exceptional drought in the region.

As of Nov. 3, the regional corn harvest was rated at 97 percent complete in Texas, 87 percent in Kansas, and 80 percent in Colorado. Kansas growers also had 81 percent of the soybeans harvested by that date, but the regional cotton harvest lagged at just 21 percent complete in Kansas, 33 percent in Oklahoma, and 37 percent in Texas. Cotton conditions in the region continued to show the effects of lingering drought, with just 29-38 percent

Sulfur

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

Tampa: Price increases for sulfur in other areas of the world may not have much of an impact in the U.S. by the time negotiations for the first quarter roll around.

Canadian sulfur producers appeared to be adjusting to the new, lower prices, and the world market was considered a bit thin to support long-term, higher prices.

The U.S. Department of Energy reported that refinery capacity operating rates decreased last week by 0.5 percent, from 87.3 percent the previous week to 86.8 percent. A year ago, the rate was 85.4 percent, but the four-year average was 84.2 percent.

The fourth-quarter price for molten sulfur delivered to Tampa was $75/lt.

Vancouver: Export prices at Vancouver have stayed flat despite slightly higher prices at China. However, even if the price does rise, the Vancouver price will not go up that much.

Although the price range for Vancouver sulfur was still said to be in the $50-$70/mt FOB range last week, it should be heading toward the higher end of the range.

West Coast: Prices on the West Coast for prill sulfur were still in line with Vancouver, in the $53-$73/mt FOB range, but prices will increase if the China price holds or increases.

U.S. Gulf: The price was unchanged in a range of $60-$70/mt FOB.

Benelux: The Benelux price range for the third quarter was $140-$155/mt. A new fourth-quarter price had not been set as of late last week.

ADNOC: The ADNOC price for November was posted at $80/mt FOB, which was up from $70/mt FOB in October, and $20/mt FOB higher than the previously planned $60/mt FOB for November. At Qatar, the price was $73/mt FOB.

Bangladesh: BCIC has reissued an international tender for the import of 15,000 mt of rock sulfur on a CFR Chittagong Port basis. Bids are due Dec. 3, with shipment required within 30 days of the receipt of a letter of credit.

Potash

Eastern Cornbelt, Market Watch, Potash Muriate, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf: The potash barge market was quiet at $340-$342/st FOB.

Eastern Cornbelt: The potash market was steady at $380-$390/st FOB regional warehouses in the Eastern Cornbelt.

Western Cornbelt: Potash was unchanged at $375-$387/st FOB regional warehouses in the Western Cornbelt, depending on location and grade, with the upper end for white granular tons on a spot basis. An Iowa contact quoted the red granular potash market last week at the $385/st FOB level in his location.

Southern Plains: Potash pricing was pegged at $380-$385/st FOB regional warehouses, down another $5/st from last report. Reference prices FOB Carlsbad, N.M., were steady at $395/st FOB for 60 percent standard, $400/st FOB for 62 percent standard and 60 percent granular, and $407/st FOB for 62 percent granular.

South Central: Potash was quoted at $375-$380/st FOB warehouses in the South Central region.

Southeast: Potash was quoted at $385/st FOB regional warehouses, with rail-delivered tons pegged in a broad range at $380-$397/st, depending on location and grade.

Phosphates

Central Florida, Eastern Cornbelt, Market Watch, Phosphate Rock, Southeast, Southern Plains, Triple Superphosphate, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida: Last week, rain helped ease dry conditions in New York and portions of Pennsylvania, as well as northern Florida and southern Georgia, according to the U.S. Drought Monitor. However, the monitor placed South Florida in the extremely dry category.

Rain also helped slow the harvest in the Northeast and Mid-Atlantic last week, so farmers were not swarming dealers. As a result, dealers were continuing their strategy of buying only relatively small amounts to keep some product in their bins.

While market conditions will not help anyone in the industry this calendar year, a lot of phosphate, potash, and other fertilizers will have to go down in the spring in order for farmers to get the size yields they have come to expect, or at least hoped for during the past few years.

Prompt DAP railcar sales have been nearly nonexistent in recent months, but producers have said contract sales were solid and have been this fall season, which should mean no curtailment of production.

The Central Florida market range for DAP changed slightly, from $365-$370/st FOB the previous week to $360-$370/st FOB last week. MAP prices continued to bring a premium of about $20/st FOB over DAP in the Central Florida market. Sources put PotashCorp’s DAP price from Aurora, N.C., at $410/st FOB last week.

U.S. Gulf: The week after Halloween turned out to be more of a trick than a treat for the industry.

Offers on NOLA DAP and MAP barges loaded or about to be loaded dropped like a third-rate fighter in a fixed boxing match. However, those lucky few who had barges farther upriver made out like bandits.

It was like the three most important factors in real estate – location, location, and, of course, location. The difference was $50/st FOB or more.

Last spring, wet weather kept farmers out of their fields, and the planting of corn and soybeans, as well as other crops, was delayed. In some cases, crops were not started until June, which allowed less time to grow and mature. Therefore, it was not surprising that the harvest was delayed, and some of it may not find its way out of the fields until early next year.

That means less fertilizer will be applied between now and the end of the year – which, by the way, was less than two months away.

The U.S. Department of Agriculture was scheduled to issue its estimate shortly after Green Markets press time, but most were betting on a record or near-record corn harvest. Corn prices have been lower this year than during the past several years, and the report could push the price even lower.

In the snapshot of grain prices at 4 p.m. Thursday, lower was exactly what grain prices did all across the board compared to the previous week. For December 2013, corn was $4.205/bushel, a decrease from the $4.2825/bushel for the previous reporting period. Corn for December 2014 was posted at $4.6125/bushel, lower in comparison to $4.695/bushel the previous week. The soybean price for January 2014 was $12.665/bushel. Beans for November 2014 were posted at $11.475/bushel, lower than the $11.5825/bushel the previous reporting period. Wheat for December 2013 changed to $7.125/bushel, down from the previous week’s $7.405/bushel. Wheat for July 2014 was $7.0675/bushel, which was lower than the $7.23 of the previous week. Meanwhile, wheat for July 2015 was posted at $7.1175/bushel, less than the $7.17/bushel from the last report.

Warehouse and terminal DAP prices last week were in the range of $375-$410/st FOB, and MAP at terminals was running approximately $10-$20/st FOB higher than for DAP.

The paper market for future deliveries for December was as low as $320/st FOB, with a range of $320-$330/st FOB, but prices for January were expected to be higher as spring draws nearer.

The only actual transactions found last

Ammonium Sulfate

Ammonium Sulfate, Eastern Cornbelt, Market Watch, Southeast, Southern Plains, Western Cornbelt

Eastern Cornbelt: Granular ammonium sulfate remained at $270-$280/st FOB in the region. Ammonium thiosulfate was steady as well at $340-$355/st FOB.

Western Cornbelt: Granular ammonium sulfate was steady at $255-$265/st FOB in the Western Cornbelt. Ammonium thiosulfate was unchanged as well at $300-$325/st FOB, depending on location.

Southern Plains: Granular ammonium sulfate was unchanged at $250-$285/st FOB shipping points in Texas, with the low at Freeport and the upper end FOB Littlefield and Plainview. Coarse grade prices were $10/st less than granular.

South Central: Granular ammonium sulfate was quoted in a broad range at $265-$285/st FOB in the South Central region, with the upper end reported in Louisiana and Arkansas. The Memphis market was pegged at $265-$270/st FOB last week.

Southeast: Granular ammonium sulfate remained at $250-$255/st FOB Hopewell, Va., and $265/st FOB Augusta, Ga., with delivered tons pegged at $270-$275/st in the Carolinas, $280/st in Georgia and Alabama, and $285/st in Florida. Standard grade reference prices included $180/st FOB Augusta and $200/st DEL in Florida.

Ammonium Nitrate

Ammonium Nitrate, Market Watch, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf: The ammonium nitrate barge market remained very quiet last week, with the last done business still called $270-$275/st FOB.

Western Cornbelt: Ammonium nitrate pricing was down from last report, with sources quoting the dealer market at $325-$345/st FOB in the Western Cornbelt, depending on location. The low end of the range was reported in the Iowa market on a spot basis last week.

Southern Plains: The ammonium nitrate market was pegged at $300-$310/st FOB Tulsa, down some $30/st from last report.

South Central: The ammonium nitrate market in the South Central region remained at $335/st FOB Memphis on the low end, while the upper end of the regional range was tagged at $360/st FOB Little Rock, Ark.

Southeast: Sources quoted the Tampa ammonium nitrate market at $350/st FOB, give or take.

Nitrogen Solutions

Eastern Cornbelt, Market Watch, Southeast, Southern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf: While some continued to report trades as low as $225/st FOB, more last week saw a bullish tone to the market, saying new business had also occurred as high as $235/st FOB. Others were quoting higher prices.
The Trinidad AUM plant startup has been delayed until Nov. 10.

Eastern Cornbelt: UAN-28 remained at $245-$260/st ($8.75-$9.29/unit) FOB in Ohio and Indiana. The low end of the range was quoted in the Cincinnati market, with UAN-32 pegged at the $280/st ($8.75/unit) FOB level at that location. Illinois sources continued to report UAN-32 pricing in the $280-$288/st ($8.75-$9.00/unit) FOB range, depending on location.

Western Cornbelt: The UAN-32 market remained at $275-$295/st ($8.59-$9.22/unit) FOB in the Western Cornbelt, with the low reported in Missouri and the high in Iowa on a spot basis.

Southern Plains: The UAN-32 market was pegged at $265/st ($8.28/unit) FOB regional production points on the low end, while the upper end of the regional range continued to be quoted at $280/st ($8.75/unit) FOB terminals in Kansas. The dealer market out of terminals on the coastal bend of Texas remained at the $270/st ($8.44/unit) FOB level.

South Central: UAN-32 pricing was steady at $265-$275/st ($8.28-$8.59/unit) FOB terminals in the South Central region for spot tons.

Southeast: Sources quoted the UAN-32 market at $245-$248/st ($7.66-$7.75/unit) FOB Norfolk, Va., and Wilmington, N.C

Urea

Bangladesh, Black Sea, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Pakistan, Southeast, Southern Plains, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf: Prompt granular barge prices continued to move up last week. Early week trades were called as low as $298/st FOB. However, by late Thursday, sources were calling new business in the $315-$318/st FOB range for prompt business. Others were skeptical, saying they were seeing resistance at the higher numbers. Most continued to call the recent business trader-to-trader transactions driven by a tighter international market. While exports can still be made from Chinese bonded warehouses, many were betting that there would not be enough product there to sufficiently meet the needs of buyers in India, Pakistan, and elsewhere.

Prills continued to be called stronger at $310-$315/st FOB.

Eastern Cornbelt: Granular urea was steady at $320-$340/st FOB, with the low end FOB Cincinnati, Ohio.

Western Cornbelt: The urea market in the Western Cornbelt ticked up just slightly from the last report. Sources quoted granular urea at $325-$335/st FOB in the region last week, with the low in southern Missouri and the upper end in the Iowa market.

Southern Plains: Sources said supplies of urea and phosphates have loosened up in Tulsa, Okla., as demand tapers off for winter wheat applications. As a result, spot pricing had also backed off from highs achieved in mid-October, when supplies were temporarily tight.

Granular urea pricing was quoted at $325-$335/st FOB the Tulsa market, down roughly $10/st from last report. The Houston urea market had also fallen roughly $10/st, to $340/st FOB.

South Central: A run-up in NOLA urea barge pricing in recent weeks has fueled a price uptick out of terminals in the South Central region as well, though several sources questioned the validity of the NOLA price increase based on “very little liquidity and very little trading.”

Sources quoted the granular urea market at $330-$340/st FOB regional terminals last week, up $10-$15/st from last report, with the low again reported out of the Memphis market.

Southeast: The granular urea market had reportedly slipped to $355-$365/st FOB port terminals in the Southeast, down $5/st from last report.

High winds in early November whipped up high seas from the southern Florida coast up to South Carolina, but most parts of the region enjoyed suitable weather for harvesting last week.

North Carolina growers had fully 98 percent of the corn in the bin by Nov. 3, along with 19 percent of the soybean crop. The regional peanut harvest had progressed to 82-94 percent complete in the region by that date.

The region’s cotton harvest continued to trail the average pace considerably, however, with progress as of Nov. 3 rated at just 28-35 percent complete in the region, depending on the state. Cotton quality varied widely, with good or excellent ratings assigned to just 36 percent of the acreage in South Carolina, 47-48 percent in Georgia and North Carolina, 70 percent in Alabama, and fully 80 percent in Virginia.

With growers fully focused on the regional harvest, sources reported little in the way of fertilizer activity in early November.

India: India Potash Ltd. called a tender to close Nov. 11.

Sources began analyzing the Chinese bonded warehouse situation alongside Iranian production, and compared those numbers with estimates of potential Indian demand.

The bottom line is that the supply does not match the demand.

Sources estimate India still needs to buy about 2.5 million mt of urea by the end of the year. The best guess estimate of Chinese urea that might be available for export is about 1 million mt. At the same time, Iranian supply through December may be no higher than 300,000 mt.

At the same time India is looking for tons, Pakista

Pinnacle acquires ag retail businesses in Texas, Kentucky, Georgia

Featured, News

Pinnacle Agriculture Holdings LLC, through its subsidiary Jimmy Sanders Inc., announced that it has acquired Acuff Farm Supply in Lubbock County, Texas, Mathis Farm Supply in Melber, Ky., and certain assets of G and C Fertilizer Company Inc. in Lyons, Georgia.

Acuff was founded in 1960 as a full-service farm supply operation providing seed, fertilizer, and crop protection chemicals, as well as various hardware and implement supplies to local growers. Under Sanders ownership, the location will be managed by former Acuff owner Don Jones, and will remain at its present site in Lubbock. The current employees of Acuff will retain their positions under Sanders ownership.

“This has been a difficult decision for me due to the long-standing relationship with my customers, but I was careful to select only a company who shares similar commitments to their customers and employees,” Jones said. “Sanders patterns their business on four core principles that put the customer first, and that was very important to us. I am pleased not only about the transition of ownership, but also the ability to continue to manage the operations and interact daily with my customers.”

Coupled with an existing Sanders location in Slaton, Texas, the Acuff business will be Sanders’ second retail facility in the Lubbock/Slaton area offering custom fertilizer blends, as well as seed and crop protection products. Both locations also provide precision ag services through Sanders’ proprietary OptiGro system.

“Sanders is very pleased with the recent purchase of this long-established, respected business, and welcomes its staff to our family,” said Dane Higgins, Jimmy Sanders area manager. “We are confident that the farmers Acuff has served so well will experience a seamless transition and continue to receive efficient, competitive, and timely service.”

Mathis Farm Supply in Kentucky was founded by John Ben Mathis in 1971 as a DeKalb seed corn dealer. In 1984 Mathis’ sons, John and Neal, opened a full-service agricultural retail store at the site offering seed, crop protection products, fertilizer, and custom application. Under Sanders ownership, the facility will be managed by former owner John Mathis, and will remain at its present location in Melber. Steve Wray and Keith Myers will continue to manage the Mathis sales operations.

“I’m very proud of the business that we have developed over the years. It has come a long way since my father started it in the 1970s,” said Mathis. “My employees and I look forward to the transition to Sanders. We are excited to introduce our customers to the core principles instilled by Sanders, as well as being part of an American-owned company.”

The Mathis location will be Sanders’ fourth in that area, with other retail facilities currently located in Fancy Farm, Mayfield, and Wingo, Ky. All of the locations offer custom fertilizer blends and seed and crop protection products, as well as Sanders’ OptiGro precision ag services. Sanders noted that Mathis has been one of its valued wholesale customers for several years.

“Sanders is very pleased with the recent acquisition of this well-established, respected business and welcomes its staff to our family,” said Chris Drummond, Sanders’ Bluegrass Division manager. “We have enjoyed an excellent working relationship with Mathis Farm Supply for several years, and we are confident that the farmers it served so well will experience a smooth transition and continue to receive efficient, competitive, and timely service.”

Sanders’ third recent acquisition, announced in late October, is of the agriculture retail assets associated with Lyons, Ga.-based G and C Fertilizer, dba U.S. #1 Farm Center. U.S. #1 Farm Center was founded in 1969 as a seed, fertilizer, and crop protection ret

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