Oslo — Yara International ASA, citing weaker fertilizer markets, saw a 97 percent drop in net income for the fourth quarter ending Dec. 31, 2013, to NOK 59 million on sales of NOK 20.6 billion, versus the year-ago NOK 2,153 million and NOK 21 billion, respectively. Yara said things were so bad during the quarter that it considered curtailment of some of its commodity nitrogen plants. It said although prices have improved, it will continue to evaluate temporary or permanent capacity curtailments on an ongoing basis, linked to market price developments and investment decisions. Things were also not rosy in Libya, where the Lifeco nitrogen complex had a controlled shutdown in early January due to a local militia blocking the site. Yara continues to evaluate that situation and said it is unclear when production can resume. Fourth-quarter fertilizer sales volumes were up 13 percent, to 7.64 million mt from the year-ago 6.85 million, with much of this coming from the Bunge-related acquisition in Brazil. Full-year income was off 46 percent, to NOK 5,748 million on sales of NOK 85 billion, versus 2012’s NOK 10,552 million and NOK 84.5 billion, respectively. Sales volumes were 30.8 million mt, up from 28 million mt.
U.S. Gulf/Tampa: The markets remained quiet last week.
July-December ammonia imports were off 15 percent to 2.94 million st, down from the year-ago 3.48 million st, according to the U.S. Department of Commerce. December was off 18 percent, at 480,071 st from the year-ago 586,438 st.
March NYMEX natural gas closed at $5.223/mmBtu Feb. 13, up from Feb. 6’s $4.931/mmBtu.
Eastern Cornbelt: The storm that blanketed the Northeast with heavy snows last week stayed mostly east of the region, though winter was flexing its muscles in parts of the Eastern Cornbelt as well.
A winter weather advisory was in effect as the week advanced for south central Indiana, and cold temperatures produced freezing rain and snowfall in central and southern Ohio last week. Parts of Ohio continued to shiver under subzero lows last week.
Sources reported only slight changes to the spot fertilizer markets, with few new sales to test the market.
The anhydrous ammonia market remained at $515-$530/st FOB in Illinois, with the low FOB E. Dubuque. The upper end of the regional range was steady at $540/st FOB in the Indiana market.
Western Cornbelt: Anhydrous ammonia pricing continued to cover a very broad range in the Western Cornbelt, with the low end reported at $440/st FOB in Nebraska. In Iowa, the dealer market was quoted at $475-$480/st FOB, while Missouri sources pegged the market at $490-$500/st FOB or for delivered tons from southern production points.
Drought conditions continued to expand in Iowa and Nebraska, according to the Feb. 11 U.S. Drought Monitor. Only the northeast corner of Iowa remained drought-free last week, with moderate to severe drought covering the southern half of the state and abnormally dry conditions reported in the west.
Nebraska remained completely enveloped in some form of drought last week, ranging from abnormally dry in the state’s eastern counties to severe-to-extreme drought conditions in the southwest. Northern Missouri was also experiencing abnormally dry to moderate drought conditions at mid-month.
California: Parts of California finally received some drought relief in the form of rain and snow in early February. The storm dropped more than 11 inches of rain in parts of Marin and Sonoma Counties in northern California, and 1-3 inches in the San Francisco area.
The storm blanketed parts of the Sierra Nevada with 1-2 feet of new snow, boosting snowpack levels in the range that had fallen to just 12 percent of normal as of Jan. 30.
The state still needs a lot of precipitation to pull it out of its severe drought status, however. Gov. Jerry Brown in January declared a drought emergency in California, and legislators have offered a number of proposals to combat the drought, including a measure that would reallocate water from the San Joaquin Delta to farmers south in the Central Valley, and another that would allocate some $300 million into emergency aid and drought relief projects.
“More rain is needed, but recent storms have helped some,” said one regional contact last week. “Movement has started, and it should be an earlier-than-normal spring.” Another sourced noted, however, that the pace remains slow because growers are “not sure what to do, with water availability at about half of their needs.”
The anhydrous ammonia market was unchanged at $630-$635/st DEL in California. Aqua ammonia was reported at the $172/st FOB level in the state; Agrium’s Feb. 10 aqua ammonia posting in California included $172/st FOB.
Pacific Northwest: Oregon and parts of western Washington began the week with high winds and freezing rain, and high wind warnings continued at midweek for some coastal areas of both states. The moisture followed
U.S. Gulf: Prompt granular barges moved up last week, trading within the $410-$430/st FOB range. The higher numbers were achieved later in the week.
Prills were called $380-$398/st FOB.
Urea imports were off 25 percent for July-December, to 3 million from the year-ago 4 million. Imports were off only 5 percent in December at 603,032 st from the year-ago 632,030.
Eastern Cornbelt: Granular urea was quoted at $440-$450/st FOB in the region, up slightly from the previous week, with the low reported at Cincinnati, Ohio.
Western Cornbelt: The granular urea market remained at $440-$450/st FOB in the Western Cornbelt, with most locations holding firmly to the upper end of that range.
California: Sources pegged the Stockton, Calif., urea market at $470-$475/st FOB last week, up another $5-$10/st from last report. Effective Feb. 10, Agrium’s granular urea postings in California firmed to $460/st FOB West Sacramento, $475/st FOB Hanford and Richvale, $505/st truck-DEL in Central California, and $515/st truck-DEL in northern California.
Pacific Northwest: The granular urea market remained at $480-$490/st FOB Rivergate, Ore. Delivered urea was quoted at $485-$515/st DEL in the region, depending on location. Several sources described urea supplies in the region as short.
Western Canada: The granular urea market had reportedly firmed to $660-$685/mt DEL in Western Canada, reflecting another $70/mt increase from last report, and up a full $140-$160/mt from December 2013 pricing levels.
Pakistan: Sources report that TCP and the Pakistan government are still in talks with the Islamic Development Bank to nail down the rules for an upcoming urea tender.
Sources say the differences lie in the different regulations that govern TCP and bank-sponsored tenders. For example, one trader noted that TCP would like to allow the urea to come from any source. The bank, however, wants to limit the source to countries that are part of the bank structure.
Another dispute is reportedly the time frame from when the tender is announced, when the tender closes, and when the letters of credit are issued.
Once the technical details are settled – and sources expect that to happen by the end of the month – TCP will call a tender for about 125,000 mt of urea.
Distribution of the urea, once imported, will be taken over by the domestic producers. Sources say the government has stripped National Fertilizer Marketing Ltd. (NFML) from its domestic distribution responsibilities.
Complaints of corruption and short-weight bags led to a massive investigation by the government against NFML and the suspension of its distribution authority.
Sources say once TCP imports the urea, the material will be allocated to various domestic producers, who will then ship the tons through their own distribution networks.
The producers are willing and eager to take on the task of distributing the imported urea, even as they continue to argue that if they were given enough natural gas for production, there would be no need for imports.
India: Sources say the fertilizer ministry people are carefully looking over the current budget, as well as the budget plans for the next fiscal year beginning April 1.
The review of how much cash is available and how much might be available is being applied to the decision as to when to call a urea tender.
Sources say that despite the assurances of the fertilizer ministry, the domestic supplies are not as large as publically stated, nor are they as low as some pessimists claim, said one trader.
The most likely time for a tender call, say sources, will be the first week of March, or maybe
U.S. Gulf: UAN barges remained flat, with most calling them $290-$295/st ($9.06-$9.22/unit) FOB. Sources said sellers were generally offering barges anywhere within the $290-$300/st FOB range.
Recent East Coast business was called $325/mt CFR, with a report of a new sale into Eastern Canada at $340/mt CFR.
July-December imports were off 23 percent, to1.28 million st from the year-ago 1.64 million st. December imports were off 27 percent, to 244,003 st from 332,180 st.
Eastern Cornbelt: The UAN market was pegged in a broad range at $10.53-$10.94/unit FOB in the Eastern Cornbelt, with the upper end reported in the Illinois and Indiana markets on a spot basis.
Western Cornbelt: UAN-32 had reportedly firmed to $340-$350/st ($10.63-$10.94/unit) FOB in the Western Cornbelt. One Iowa contact reported the common dealer price in the $345-$350/st ($10.78-$10.94/unit) FOB range in his trade area last week.
California: Sources quoted the UAN-32 market at $330-$340/st ($10.31-$10.63/unit) FOB Stockton, up some $15-$20/st from last report, with the upper end of the California market pegged at the $360/st ($11.25/unit) level FOB El Centro. Rail-delivered UAN tons into the state were also reported above the $360/st level last week.
Agrium’s UAN-32 postings in California moved up on Feb. 10, firming to $325/st ($10.16/unit) FOB Sacramento and $355/st ($11.09/unit) truck-DEL in the state.
Pacific Northwest: Sources quoted the UAN market at $365-$380/st ($11.41-$11.88/unit) truck-DEL in the Pacific Northwest, up roughly $10-$20/st from last report. Effective Feb. 3, IRM’s UAN-32 postings in eastern Oregon and Washington firmed to $370/st ($11.56/unit) DEL.
Agrium announced another UAN-32 posting increase in the Pacific Northwest as well, moving on Feb. 10 to $380/st ($11.88/unit) rail-DEL in Washington, northern Idaho, and Oregon excluding Malheur County; $385/st ($12.03/unit) rail-DEL and $390/st ($12.19/unit) truck-DEL in southern Idaho and Oregon’s Malheur County; and $385/st ($12.03/unit) rail-DEL and $400/st ($12.50/unit) truck-DEL in the Klamath Basin sales area. Those levels were up $20/st from Agrium’s Jan. 22 reference prices.
In Montana, Agrium’s Feb. 10 postings included $390/st ($12.19/unit) DEL for UAN-32 and $340/st ($12.14/unit) DEL for UAN-28. Those levels were up $15-$20/st from the company’s Jan. 22 postings.
Western Canada: UAN-28 was firming in Western Canada. Sources reported dealer pricing at $425-$448/mt ($15.18-$16.00/unit) DEL in the region, up $40-$42/st from last report, with the low in Manitoba and Saskatchewan, and the upper end in Alberta and British Columbia.
U.S. Gulf: While the most recent barge trades were called $330/st FOB, March was reported to have traded at $345/st FOB.
July-December imports were of 50 percent, to 228,542 st from the year-ago 458,690 st. December imports were off 77 percent, to 28,583 st from the year-ago 122,221 st.
Western Cornbelt: The ammonium nitrate market remained at $375/st FOB in the Western Cornbelt.
California: No market was reported for ammonium nitrate in California.
CAN-17 pricing was unchanged at $305/st FOB Stockton, $308-$318/st FOB Helm, and $328/st FOB El Centro.
AN-20 was steady at $300/st DEL and $290-$295/st FOB in California.
U.S. Imports: July-December imports were up 11 percent, to 120,746 st from the year-ago 109,245 st.
Eastern Cornbelt: Granular ammonium sulfate was unchanged at $270-$280/st FOB in the Eastern Cornbelt.
The ammonium thiosulfate market remained at $330-$335/st FOB in the region.
Western Cornbelt: The granular ammonium sulfate market was quoted at $265-$275/st FOB in the Western Cornbelt. Ammonium thiosulfate was steady at $310-$335/st FOB in the region.
Effective Feb. 12, Agrium’s granular ammonium sulfate postings firmed to $305/st DEL in North Dakota, Minnesota, and Wisconsin.
California: Ammonium sulfate remained at $245-$285/st FOB in California, with the low in Lathrop and the upper end FOB El Centro.
Ammonium thiosulfate was steady as well at $300/st FOB Stockton.
Pacific Northwest: Sources quoted the granular ammonium sulfate market up slightly at $245-$280/st FOB and $255-$285/st DEL in the Pacific Northwest. Agrium’s granular ammonium sulfate postings moved up $20/st on Feb. 12, with new reference levels reported at $280/st FOB the warehouse and $285/st DEL in Washington, Oregon, Idaho, Utah, and Nevada; and $285/st DEL in Montana and Northern Wyoming.
IRM’s postings for WesternStandard ammonium sulfate remained at $198/st FOB and $208/st DEL in Oregon, Washington, Montana, and Idaho.
Ammonium thiosulfate was unchanged at $310-$330/st FOB in the Pacific Northwest, depending on location and supplier.
Western Canada: Granular ammonium sulfate pricing had moved up significantly in Western Canada, with sources quoting the dealer market at $465-$470/mt DEL in the region.
Central Florida: Hot on the heels of Winter Storm Nika, Winter Storm Pax rolled through the Southeast in the early part of the week and was predicted to turn north by Thursday night.
Pax dumped 3-5 inches of snow on parts of the Carolinas and southern Virginia, while snowfall totals of up to 8-12 inches were reported in northern Virginia, West Virginia, and Maryland. Alabama and Georgia received a blast of snow, rain, and sleet, leaving thousands without power.
The storm was expected to continue northward overnight Thursday and into the weekend, bringing a wintry mix along the coast from Washington D.C. to Boston, while inland areas braced for an anticipated 6-18 inches of snow.
Parts of Florida received nearly 3 inches of rain for the week along Pax’s southern periphery, and localized daily totals reportedly broached the 1-inch mark. The rains were welcome, topping off the water table ahead of a planting season slated to begin in late February or March.
Demand in the Central Florida phosphate market remained mostly flat. The recent trend of limited truck sales into the state continued however, and those were snapped up at a reported price of $480/st FOB.
Central Florida DAP jumped to $480/st FOB on limited sales, an increase from the previous range of $430-$460/st FOB. Mosaic’s posted price for Central Florida DAP was $430/st FOB.
The premium for MAP was expected to follow NOLA’s lead at $5-$10/st FOB over DAP.
U.S. Gulf: Trading on the river took off last week. Transactions kicked off at $463/st FOB for DAP on Monday and rose to $490/st FOB by Thursday. Swirling rumors of a $495/st FOB transaction went unconfirmed, but a pair of online DAP barge auctions for February/March loading went unsold at $495/st and $492/st FOB Thursday. Paper trades were quoted as high as $494/st FOB.
MAP drew no reported interest, and its premium over DAP was said to fall as low as $5/st FOB. Some sources expected that trend to continue, and speculated that DAP could flip and command a premium over MAP in the near-term.
Sources pointed to a host of potential factors for the price explosion – Mississippi Phosphates’ switch to MAP production and the perceived curtailment of phosphates by producers, for example – but rumors of missed or delayed shipments from OCP were generally agreed to have been a prime motivator for the activity, as dealers suddenly had to scramble to fill their bins from other sources.
Blame for the delayed shipments was mostly placed on weather-related issues, but a source with knowledge of the North African market said the problems were just getting started and could be expected to continue for some time.
Ice-related delays on the upper Mississippi River were reported in the form of lock closures in Wisconsin, Illinois, and Missouri, and delays of 4-6 hours at the Melvin Price lock, north of St. Louis, Mo., were announced through Jun. 1 as the main lock chamber is repaired. Rock removal at Thebes was still underway and is expected to continue as long as river levels at Cape Girardeau, Mo., are below the 10-foot mark.
Towing restrictions were in place on the Ohio River thanks to ice buildup in the Pittsburgh area, and ice couplings were advised for the first time in 20 years.
In the New Orleans area, delays were reported in the Gulf due to low temperatures and fog, but conditions were expected to improve over the weekend.
A 4 p.m. Feb. 13 view of the futures market saw corn prices down, but soybeans and wheat were on the rise.
March 2014 corn contracts were $4.405/bushel, down from the previous week’s $4.43/bushel, and May 2014 corn was $4.465/bushel, a decrease from $4.485/bushel in the last reporting period. December 2014 corn was also pointed south at $4.5625/bushel, trailing its previous price of $4.58
U.S. Gulf: Potash barge prices continued to move up, with the latest trades in the $313-$325/st FOB range. While the higher end of the range was reported, skeptics argued that anyone seriously looking for a barge could still do sub-$320/st.
July-December MOP imports were up 4 percent, to 4.83 million st from the year-ago 4.64 million st. However, December imports were off 22 percent, to 664,368 st from the year-ago 854,215 st.
Eastern Cornbelt: Potash pricing from producers and most resellers had reportedly firmed some $20/st to the $370/st FOB mark for red granular and $377/st FOB for white granular. Sources reported no new sales at the higher numbers, however, with the last business reportedly done at $350-$357/st FOB in the Eastern Cornbelt.
Western Cornbelt: Potash prices from producers and resellers were at the $370/st FOB level for red granular and $377/st FOB for white granular tons, following the posting hike that occurred from producers the previous week. There was little new business to test the market, however. “Most everyone had a chance to buy at the old number of $350/st FOB,” said one source.
California: Potash pricing was pegged at $475-$495/st FOB or DEL in California.
The sulfate of potash (SOP) market remained at $660-$670/st FOB in California, with some sales taking place and sources continuing to talk of short supply.
Crystalline potassium nitrate remained at $950/st FOB for bulk and $1,020/st FOB for bags.
Pacific Northwest: Sources quoted the potash market at $425-$445/st rail-DEL in the Pacific Northwest, with warehouse pricing reported in the $435-$445/st FOB range.
Potash pricing FOB Utah mines had reportedly firmed some $20/st to $405/st for new orders, but sources reported no new business at that level, with the last sales into the Pacific Northwest reported at the $385/st FOB mark.
The K-Mag market remained at $451-$471/st FOB in the Pacific Northwest.
Western Canada: Sources quoted the potash market at $379/mt FOB Saskatchewan mines to Canadian customers, up some $30/mt from January pricing levels. Warehouse prices in the Western Canada were reported at $390-$410/mt FOB, depending on location.
Disclaimer of Warranty
All information has been obtained by Green Markets from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Green Markets or others, Green Markets does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.
