All Posts from June 16, 2014

Ammonia

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

U.S. Gulf/Tampa: Tampa and NOLA remained quiet last week.

July-April ammonia imports to the U.S. were off 22 percent, according to the Department of Commerce, falling to 4.69 million st from the year-ago 6 million st. April was off 21 percent, to 515,269 st from 654,401 st.

July NYMEX prices closed June 12 at $4.762/mmBtu, up slightly from the June 5 close of $4.701/mmBtu.

Eastern Cornbelt: Sidedress activity continued in the Eastern Cornbelt, although rainfall slowed the pace in northern Ohio at midweek.

Growers were still working to plant the last of the soybean crop last week. Planting progress as of June 8 was rated at 92 percent complete in Illinois, 88 percent in Indiana, and 85 percent in Ohio, with all three states tracking ahead of the five-year average. Corn emergence as of June 8 was 93-97 percent in Indiana and Illinois, compared with 81 percent in Ohio.

Sources continued to report the anhydrous ammonia market at $650-$660/st FOB regional terminals in the Eastern Cornbelt, although inventories were nearly tapped out in early June. Illinois sources continued to report product moving out of terminals last week.

Western Cornbelt: Anhydrous ammonia remained in a broad range at $570-$645/st FOB in the Western Cornbelt, with the low in Nebraska and the high FOB Palmyra, Mo. Delivered ammonia in the Missouri market was pegged in the low $600s/st from southern production points.

The region enjoyed much calmer weather last week after the prior week’s deluge of rain, hail, and powerful winds.
Although the early June storms caused extensive property damage in parts of Nebraska and Iowa and delayed the start of the winter wheat harvest in southern Missouri, they also brought much needed drought relief.

According to the June 10 U.S. Drought Monitor, Nebraska had undergone a transformation from just a few weeks earlier, with only the central portion of the state reporting moderate to severe drought. Drought had also receded in Iowa, with only the northwestern corner of the state still experiencing severe drought last week. A small portion of western Missouri remained in moderate drought last week, while the eastern counties were drought free.

Southern Plains: Thunderstorms pushed through northern Texas as the week advanced, helping to alleviate persistent drought conditions in the region. Sources also reported wet conditions in eastern Kansas last week, which slowed fertilizer movement.

Cotton planting in the region as of June 8 was tracking close to the average pace at 70 percent complete in Oklahoma, 82 percent in Kansas, and 85 percent in Texas. Kansas growers also had 82 percent of the soybeans planted by that date, but sunflower planting was lagging at only 34-36 percent complete in Kansas and Colorado.

Sorghum planting was also trailing the five-year average in the region, except in Texas, where fully 90 percent of the crop was seeded by June 8. Progress in the rest of the region was rated at only 30 percent in New Mexico, 38 percent in Colorado, 50 percent in Kansas, and 55 percent in Oklahoma.

Winter wheat growers in Oklahoma and Texas had 26-30 percent of the crop harvested by June 8, but crop conditions were dismal due to the ongoing drought. USDA assigned poor or very poor ratings to fully 76 percent of the Oklahoma wheat crop last week, along with 63 percent of the acreage in Kansas and Texas. Colorado’s winter wheat was rated 38 percent poor or very poor, and 34 percent good to excellent.

Ammonia pricing was down in the Southern Plains region. Sources quoted the low end of the market at $510-$520/st FOB regional production points, down $30/st from mid-May pricing levels, with Kansas pipeline terminals reported in the mid-$500s/st FOB.

South

Sulfur

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

Tampa: Sources were united in their perception of an exceptional “balance” present in the current domestic market. Supply was said to be steady, with neither shortages nor excesses seen in the marketplace.

As the calendar ticked closer to the third quarter, speculation naturally began to ramp up regarding the Tampa price of molten sulfur. While large sulfur consumers won’t open negotiations until the end of the month at the earliest, some sources predicted a modest price decline based on greater supply anticipated to hit the market.

BP’s multi-billion dollar Whiting, Ind., refinery expansion project, said to finally be producing, coupled with Syncrude’s return to production and reportedly operating at 100 percent capacity, were cited as supply-side factors that are likely to edge the market down.

In addition, the closure of PotashCorp’s Suwannee River phosphate plant at White Springs, Fla., will leave a substantial amount of previously spoken-for sulfur available in the marketplace.

Factors with the potential to minimize or even stem a third-quarter sulfur price decrease were continued strong phosphate demand, a stable sulfuric acid price, and international sulfur prices that have largely remained stable or risen over the previous two quarters.

U.S. refinery operating rates dropped for the week ending June 6, according to the U.S. Energy Information Administration (USEIA). Operating capacity fell 2.9 percent to 87.9 percent, down from the previous week’s 90.8 percent. The rate was still higher than last year’s 87.5 percent posted for the same week, but was short of the five-year average of 88.5 percent.

The second-quarter price of molten sulfur at Tampa was $133/lt.

U.S. Gulf: Sulfur sold from the Gulf Coast remained $130-$145/mt FOB.

U.S. Imports: April imports were off 35 percent, to 164,546 st from the year-ago 254,057 st. July-April imports were off 11 percent, to 1.74 million st from 1.96 million st.

Vancouver: The balanced nature of the domestic market extended to Vancouver, sources said, and virtually no spot activity was reported for the week.

Spot prices were unchanged at $135-$145/mt FOB. Second-quarter contract levels rose to $170-$190/mt FOB from the previously quoted $170-$175/mt FOB, though sources expected levels to follow the second-quarter spot price down for the third quarter.

Sulfur sold from Alberta remained steady at (-)$30-$85/mt.

West Coast: The price of West Coast sulfur was $125-$135/mt FOB.

Benelux: The Benelux sulfur price was $158-$172/mt for the second quarter.

ADNOC: ADNOC sulfur for June was $150/mt, $5/mt over the May price of $145/mt.

Potash

Eastern Cornbelt, Market Watch, Potash Muriate, Southeast, Southern Plains, Western Cornbelt

U.S. Gulf: Potash barges were in tight supply and were called $350-$360/st FOB, with most pointing toward the higher number for either new or the next round of business.

MOP imports were off 6 percent in April, to 1.14 million st from the year-ago 1.22 million st. July-April imports were almost level with the year-ago, with the current number at 8.6 million st, up from 8.57 million st.

Eastern Cornbelt: Sources quoted the potash market at $385-$390/st FOB regional warehouses in the Eastern Cornbelt for new sales.

Western Cornbelt: The potash market remained at $380-$390/st FOB in the Western Cornbelt, depending on location.

Southern Plains: Potash pricing out of regional warehouses in the Southern Plains had reportedly firmed to $370-$380/st FOB, with the Carlsbad, N.M., market holding at $360-$370/st FOB, depending on grade.

South Central: The potash market was quoted at $375-$390/st FOB warehouses in the South Central region, up $5-$10/st from last report, with the low at Memphis.

Southeast: Sources continued to report delays in receiving potash shipments. The regional market was quoted at $394-$397/st rail-DEL, with the warehouse market pegged at $390/st FOB before discounts. “Importers are poking around, but are respectful of Canadian pricing,” said one contact.

Phosphates

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

Central Florida: DAP railcars continued to draw limited interest in the Central Florida market, with sources putting the market in a range of $430-$440/st FOB. Offers of truck-loaded DAP, pegged in previous weeks around the $465/st FOB level, have effectively dried up.

Sources said the corn season was finished in most regions served by the market, though some soybean crops remained to be planted.

The price of DAP in Central Florida softened to a range of $430-$440/st FOB from the $440-$465/st FOB listed in the previous reporting period. MAP transactions remained scarce, and were estimated to command an additional $20/st FOB over DAP.

U.S. Gulf: Prices for DAP held firm on the NOLA barge market. Sources reported a slowdown in the overall volume of nearby phosphates trades, but continued demand from what remains of the spring corn and soybean season, coupled with summer fill buying, conspired to support prices.

Some sources also attributed the ongoing domestic price strength in part to high international levels. Many were bullish on phosphate prices, with some predicting a slow, steady climb into the $450s/st FOB based on competition from international buyers.

Current DAP barge levels were reported in the $435-$440/st FOB range based on actual transactions, an increase from $430-$440/st FOB the previous week. MAP was said to command a $15-$20/st FOB premium to DAP.

Sources saw an early week bump in the DAP price, with one or two barges trading above $440/st FOB – possibly as high as $442/st FOB – though sources claimed the barge’s river positions had more to do with the price than actual market conditions. By Thursday, some sources said the bottom of the DAP market had firmed to around $437-$438/st FOB. “I don’t think you can buy below that,” said one contact.

Prices for July, August, and September DAP were called $438-$445/st FOB, with summer MAP commanding $452-$458/st FOB, though sources admitted that buyers were hard to find at the moment. Traders kept a close eye on the price of corn futures, as the commodities markets were thought to affect summer fill activity and pricing.

Nearly 100 percent of the U.S. corn crop was planted as of June 8, according to USDA, with 92 percent of the crop emerged by that date. Soybeans were ahead of schedule, with 87 percent of the U.S. crop planted by June 8, ahead of the 81 percent five-year average. Soybean emergence was estimated at 71 percent, 9 percent higher than the 62 percent average.

A 4 p.m. look at the futures market on June 12 saw corn and wheat prices falling, while soybean contracts were mixed.
July 2014 corn was posted at $4.44/bushel, down from the previous week’s $4.49/bushel. Corn for September 2014 was $4.40/bushel, down from $4.4425/bushel the prior week, while contracts for December 2014 corn were at $4.4375/bushel, also lower than $4.4725/bushel the week before.

Soybean prices for July 2014 were $14.1525/bushel, lower than the $14.605/bushel seen in the previous week. August 2014 soybeans were pegged at $13.6025/bushel, down from $14.0025/bushel the previous week, but November 2014 beans were up slightly at $12.1225/bushel from the prior week’s $12.105/bushel.

July 2014 wheat punched in at $5.8525/bushel, down from $6.0575/bushel the previous week, while September 2014 wheat contracts traded at $5.97/bushel, down from $6.1625/bushel the week before. Wheat for July 2015 was $6.55/bushel, down from $6.715/bushel a week earlier.

As for commercial barge traffic, the usual NOLA-area delays were present for the week. High-water restrictions and congestion at Bayou Sorrel Lock prompted delays of 4-6 hours, and heavy traffic at Industrial Lock between East Canal and New Orleans, La. created delays of 12-14 hours. Wait times of 2-4 hours were seen at

Ammonium Sulfate

Ammonium Sulfate, Eastern Cornbelt, Market Watch, Southeast, Southern Plains, U.S. Imports, Western Cornbelt

U.S. Imports: July-April imports were up 22 percent, to 338,290 st from 276,724 st. April was up 29 percent, to 55,492 st from 43,162 st.

Eastern Cornbelt: Granular ammonium sulfate remained at $295-$305/st FOB in the Eastern Cornbelt.

Ammonium thiosulfate was steady as well at $345-$350/st FOB.

Western Cornbelt: The granular ammonium sulfate market was pegged at $280-$300/st FOB in the Western Cornbelt, and in tight supply.

Ammonium thiosulfate was quoted at $320-$335/st FOB in the region.

Southern Plains: The granular ammonium sulfate market remained at $260-$295/st FOB Texas shipping points, with the low FOB Freeport and the upper end FOB Littlefield and Plainview. Coarse grade was $10/st lower and standard $20/st lower than granular.

The ammonium thiosulfate market was pegged at $300-$310/st FOB in the Southern Plains.

South Central: Granular ammonium sulfate was quoted at $270-$280/st FOB in the South Central region in early June.

The ammonium thiosulfate market was reported at $300-$335/st FOB, with the low at Memphis and the upper end in the Arkansas market on a spot basis.

Southeast: Granular ammonium sulfate was pegged at $265-$285/st FOB in the Southeast, depending on location and supplier. Delivered pricing remained at $290/st in the Carolinas, $300/st in Georgia and Alabama, and $305/st in Florida, with standard grade ammonium sulfate referenced at $210/st FOB Augusta, Ga., and $230/st DEL in Florida.

Ammonium Nitrate

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

U.S. Gulf: The last done business was called $350/st FOB. Some said demand is now starting to slack, and prices should as well. They were predicting $340/st FOB for the next round of business. Others, however, argued that product is tight.

April imports were up 91 percent, to 70,403 st from the year-ago 36,832 st. July-April imports were still off 40 percent, however, to 471,116 st versus the year-ago 781,557 st.

Western Cornbelt: The ammonium nitrate market was steady at $400-$405/st FOB in the Western Cornbelt.

Southern Plains: The Tulsa ammonium nitrate market was quoted at $380-$390/st FOB, down $20/st from last report.

South Central: Ammonium nitrate was pegged in a broad range at $390-$415/st FOB in the South Central region, with the low at Memphis and the upper end quoted in the Arkansas market on a spot basis.

Southeast: The Tampa ammonium nitrate market was steady at $400/st FOB, give or take.

Nitrogen Solutions

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

U.S. Gulf: The most recent large trades and offers were put in the $218-$230/st ($6.81-$7.19/unit) FOB range, though sources conceded last week that finding new quotes was hard to do as many were awaiting word on official fill numbers from domestic producers. Predictions of those numbers were anywhere from $220-$240/st FOB. July/August was reportedly being offered in the mid-$240s/st FOB last week.

While some were holding firm to higher price ideas at NOLA, $270/st FOB or thereabouts, others said that inland prices are starting to fall as the season wanes.

Some argued that price ideas are lower due to large exports being made by CF, which has reportedly made one export to Eastern Canada and is eyeing two to France and possibly one to Argentina. Current pricing in France is €178- €182/mt 30 percent FCA (see Green Markets website). Depending on who you talk to, that should net back to NOLA anywhere from $180-$200/st FOB. As a result, some argued that NOLA barge pricing should reflect CF export numbers, or at least come close.

At the same time that CF is exporting a large quantity of UAN, at least one large player is bringing in Chinese product in the near term.

April imports were off 40 percent, to 281,339 st from the year-ago 471,325 st. July-April imports were off 24 percent, to 2.48 million st from 3.26 million st.

Eastern Cornbelt: Sources reported lower UAN pricing in the Eastern Cornbelt last week. The Cincinnati market had reportedly dropped to $305/st ($9.53/unit) FOB for UAN-32 and $270/st ($9.64/unit) FOB for UAN-28. The upper end of the UAN-28 market was pegged at $280-$285/st ($10.00-$10.18/unit) FOB inland terminals in Ohio and Indiana.

Western Cornbelt: The UAN-32 market was tagged at $325-$330/st ($10.16-$10.31/unit) FOB in the Missouri market last week, with the low end of the regional range quoted by Iowa sources at the $310/st ($9.69/unit) level out of production points on a spot basis.

Sources reported steady demand for corn sidedressing last week, but one Iowa source said the big push would be over by the weekend. “The crop looks great,” he added. “It is a vast improvement over the last two years.”

Southern Plains: UAN-32 pricing in the Southern Plains was down from last report. Sources quoted the regional market at $280-$290/st ($8.75-$9.06/unit) FOB production points in Oklahoma, down some $10-$20/st from May pricing levels. The market out of Gulf Coast terminals in Texas was tagged at $285/st ($8.91/unit) FOB.

South Central: UAN-32 had reportedly slipped to $295-$310/st ($9.22-$9.69/unit) FOB terminals in the South Central region, down another $15/st from last report, with the low end of the range reported in Memphis. “Some of the UAN is losing acres in the Mid-South market on corn because the crop is getting too tall,” said one regional contact last week.

Southeast: The UAN-32 market had reportedly slipped to $275-$281/st ($8.59-$8.78/unit) FOB port terminals in the Southeast, down roughly $10/st from the previous week and some $20/st below late May pricing levels.

Sources continued to report movement for sidedressing and ahead of soybean planters, but the pace was slowing down.

Urea

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

U.S. Gulf: Granular prompt barge prices ran up last week, and were put within the $320-$360/st FOB range. They quickly stepped up to the $350-$360/st FOB range by the end of the week. While many sources attributed this to good demand from rice country, others cited the new STC tender in India as boosting overall price ideas.

Late June was called $315-$320/st FOB, with July and August reported at $310/st FOB.

Prills were called $320-$325/st FOB, though sources said July was higher at $335/st FOB. New prill imports were reported to be on the way, but sources said these tons will not be Yara Libyan product as originally expected. The Yara Libyan plant was back down due to local unrest.

April saw a surge in urea imports, with the month up 28 percent, to 1.06 million st from the year-ago 830,417 st.

July-April imports were still off 12 percent, however, falling to 6.61 million st from the year-ago 7.53 million st.

Eastern Cornbelt: Granular urea pricing was quoted at $410-$420/st FOB in the Eastern Cornbelt, with the low reported in Cincinnati, Ohio.

Western Cornbelt: Southern Missouri sources reported brisk urea movement on rice last week, with warehouse urea supplies described as snug. Sources quoted the granular urea market at $380-$385/st FOB in Missouri. Iowa sources continued to report urea pricing above the $400/st FOB level, but with limited new sales to test the market.

Southern Plains: Granular urea pricing was holding at the $375-$380/st FOB level out of the Tulsa, Okla., market last week. “Product has not been over-abundant,” said one regional source. “No one wants that last ton.”

South Central: Sources pegged the granular urea market in the $385-$395/st FOB range out of warehouses in the South Central region, with low inventories reported at many locations as the first application on rice swings into full gear. The Memphis urea market was quoted solidly at the $395/st FOB mark last week.

“Too much rain has caused some fields to go without herbicide, and in some cases the first application is going by air instead of ground,” said one contact. “Applications should run into the second-half July, and many terminals have been on the floor with supply.”

Southeast: Granular urea pricing was quoted at the $430-$435/st FOB level in the Southeast, with the low reported in Savannah, Ga., and the upper end out of Norfolk, Va., and Wilmington, N.C.

Many parts of the Southeast were hit with powerful storms last week, which slowed fertilizer applications and the completion of cotton and peanut planting in some areas. “We are still planting cotton and just beginning to apply nitrogen as sidedress,” said a Georgia source at midweek. “We have a good ways to go yet.”

India: The State Trading Corp. (STC) ended speculation about when India would buy more urea. The tender called June 11 will close June 18, with offers to remain valid through June 25. The shipping deadline is July 31. Sources expect STC to buy at least 1 million mt when the dust settles.

Just before the announcement was made, Indian contacts were saying offers should be in the $255-$260/mt CFR range. At that price level, say traders, STC could take as much as 1.5 million tons.

The tender documents posted on the STC website call for a two-step offering process. One sealed envelope must include commercial and technical information about the offering company, including the tonnage being offered, with the offering price removed. The second envelope is for the actual offer, with tonnage and CFR and FOB prices included.

One trader noted that Indian companies have long used this two-step pr

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