All Posts from December 22, 2014

Nitrogen Solutions

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

U.S. Gulf: The market continued to be called $250-$260/st ($7.81-$8.13/unit) FOB, with buyers still seeking $245-$250/st ($7.66-$7.81/unit) FOB and the more bullish sellers at $260-$270/st ($8.13-$8.44/unit) FOB.

The last done East Coast vessel trades were put in the $277-$290/mt CFR range, with quotes of $290-$295/mt CFR for the next round of business.

Eastern Cornbelt: The UAN-28 market remained in a broad range at $258-$275/st ($9.21-$9.82/unit) FOB for prompt tons in the Eastern Cornbelt, with the low FOB Cincinnati, Ohio, and the upper end reported out of spot Indiana locations. Spring prepay was quoted as high as $285/st ($10.18/unit) FOB in the Indiana market.

One source pegged the Cincinnati UAN-32 market last week at $295-$303/st ($9.22-$9.47/unit) FOB, with the low for prompt and the higher number for spring prepay. Rail-delivered UAN-32 remained in the $325-$330/st ($10.16-$10.31/unit) range in the Eastern Cornbelt.

Western Cornbelt: A broad range of pricing was reported for UAN-32 in the Western Cornbelt last week. The low end of the prompt market was quoted at $285/st ($8.91/unit) FOB terminals in southern Missouri, with the upper end at $300-$310/st ($9.38-$9.69/unit) FOB in Nebraska and Iowa, depending on location. Spring prepay offers were reportedly on the table at the $320/st ($10.00/unit) FOB level in Iowa and Nebraska on a spot basis.

Southern Plains: UAN-32 pricing had firmed in the Southern Plains region. Sources pegged the prompt market at $275/st ($8.59/unit) FOB Gulf Coast terminals in Texas and $280-$285/st ($8.75-$8.91/unit) FOB Oklahoma production points, with reports of prepay tons being offered at the $285/st ($8.91/unit) FOB level or higher on a spot basis.

South Central: UAN-32 pricing was up in the South Central region, with sources quoting the regional market at $285-$290/st ($8.91-$9.06/unit) FOB, up $5/st from last report.

Southeast: Sources reported a firming UAN market based on stronger import vessel pricing. “UAN is raging ahead, getting higher and higher,” said one regional contact.

The UAN-32 market FOB Norfolk, Va., and Wilmington, N.C., was quoted at $268-$275/st ($8.38-$8.59/unit), up some $12-$20/st from November pricing levels, with UAN-30 reported in the $250-$255/st ($8.33-$8.50/unit) FOB range.

UAN-32 out of inland terminals in Georgia had firmed to $265/st ($8.28/unit) FOB on the low end, but a near-term increase was likely.

Transportation

Market Watch, U.S. Gulf

U.S. Gulf/River: Main chamber repairs at T.J. O’Brien Lock and Dam on the Illinois River fell further behind schedule last week, according to the U.S. Army Corps of Engineers. The lock’s reopening was delayed by at least two days, to 5:00 p.m. on Dec. 21. Consequently, the lock’s closure for the navigation season was pushed back to Jan. 21, 2015. The cutoff date for Chicago-bound vessels to depart New Orleans was Dec. 14.

Shippers reported 4-6 hour transit delays at Lock 27 on the upper Mississippi River, and waits of about an hour were reported at Lock 20. Flows at St. Louis began to fall last week following the Dec. 10 suspension of above-normal releases from lower Missouri River dams. Levels were expected to settle near the 2-foot mark around Dec. 25.

Upper Mississippi Locks 17 and 20 are scheduled to close for the winter season on Jan. 5. Locks 12 and 13 closed Dec. 15. The Corps’ ongoing rock removal project at Thebes, Ill., is slated to resume for the season when flows at Cape Girardeau, Mo., fall below the 10-foot mark. The Corps hopes to work the project through January with minimal transit disruptions.

On the Ohio River, one-hour wait times were reported at R.C. Byrd Lock and Lock 52. The Montgomery Lock auxiliary chamber was due to reopen to transit on Dec. 19, and the main chamber at Belleville Lock will close to daytime navigation Jan. 5-9. Belleville’s auxiliary chamber will follow suit Feb. 9-27, shuttering to daytime traffic for the duration.

Braddock Lock and Dam on the Monongahela River remained offline due to unspecified equipment failure. The site’s land chamber was open to navigation, shippers said. The Allegheny River will experience a complete closure at the Hulton Bridge replacement project, beginning at 7:00 a.m. on Jan. 7.

Major delays are expected on the Kanawha River beginning in February as the Winfield Lock main chamber closes for repairs. The work is expected to last about a month. The Tennessee River’s Pickwick Lock auxiliary chamber, offline for maintenance since Nov. 10, is scheduled to resume operations Jan. 9. Sources said the main chamber was available.

Repairs at Old River Lock on the lower Mississippi were expected to cause intermittent delays through Jan. 29.

In the Gulf area, delays of 10-12 hours were reported at Industrial Lock. Shippers experienced waits of about an hour at Bayou Sorrel, Port Allen, and Algiers Locks. Main chamber work at Calcasieu Lock, underway since Aug. 27, was completed Dec. 17. Maintenance at Harvey Lock was expected to conclude Dec. 18.

Crops/Weather

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

Grain Futures: As of 4 p.m. on Dec. 18, corn and wheat futures were higher compared to the week before, but soybeans were mixed.

March 2015 corn was posted at $4.11/bushel, up from the previous week’s $3.985/bushel, and corn for May 2015 increased to $4.195/bushel from the prior week’s $4.065/bushel. Contracts for December 2015 corn were $4.3475/bushel, up from $4.2475/bushel the week before.

Soybean prices for January 2015 were $10.35/bushel, down from the previous week’s $10.4225/bushel. March 2015 soybeans were also down, at $10.4325/bushel compared with $10.4875/bushel the week before. November 2015 soybeans, however, were up at $10.1975/bushel, compared with $10.18/bushel the week before.

March 2015 wheat punched in at $6.5525/bushel, up from the prior week’s $5.975/bushel, while May 2015 wheat contracts firmed to $6.5675/bushel from the prior week’s $6.0025/bushel. Wheat for July 2015 was $6.54/bushel, up from $6.015/bushel one week earlier.

Eastern Cornbelt: Rain and snow flurries were reported in central Indiana early in the week, and the moisture was followed by cold temperatures. Light snowfall was also reported across northern Ohio later in the week, but slightly warmer weather was in the Christmas week forecast.

Western Cornbelt: A number of winter weather advisories and storm warnings were in effect in parts of the Western Cornbelt last week.

The first, issued at midweek, covered parts of western and northern Nebraska, and called for gusty winds along with freezing rain and snowfall. “We had rain yesterday, it’s cold today, and some areas got snow,” said one Nebraska contact. The second advisory, issued for Dec. 17-18, called for 1-2 inches of snow across multiple counties in central Missouri. Sources said snowfall was also expected in parts of Iowa by the weekend.

Southern Plains: The Southern Plains was hit with cold, wet weather in mid-December that produced strong storms in some areas.

Hail and heavy rainfall were reported in parts of Oklahoma and Texas on Dec. 14, with at least one tornado confirmed in central Oklahoma. New Mexico was also in the storm’s path, with 1-3 inches of snow reported in Albuquerque and Sante Fe on Dec. 13-14. As the week advanced, up to 4 inches of snow was expected in some areas of eastern Kansas by Dec. 18.

One Kansas source said fall fieldwork in his location had been stalled by up to 4 inches of precipitation in recent weeks, with more moisture expected in the coming days. “This may knock them out until after the first of the year,” he said.

South Central: The northern half of the South Central region was experiencing winter weather conditions in mid-December. An inch or two of rain fell in southern Arkansas on Dec. 13-14. More precipitation was reported across the state as the week advanced, with snow expected in some locations by the weekend. Snowfall was also reported in southern Kentucky last week.

South Central sources reported very little fertilizer movement out of regional terminals last week. There was also minimal spring prepay business, though one contact said he expects interest to pick up as the end of the year approaches.

Southeast: Wet weather was reported in parts of Georgia, Alabama, and the Carolinas last week, while dry conditions prevailed across much of Florida. Forecasts called for colder weather over the Carolinas and Virginia during the Christmas week, with snowfall likely in some areas.

Several sources said the wet conditions resulted in some missed fall applications on winter wheat ground.

Sulfuric Acid

Market Watch, Sulfuric Acid, U.S. Gulf

U.S. Gulf: Pricing from a pair of December cargoes, coupled with two more slated for January 2015 arrival, prompted market watchers to declare a contraction in the Gulf sulfuric acid market.

Freight rates to the Gulf from European smelters were put in the low-to-mid $40s/mt, pointing to CFR prices in the $70s/mt, a decrease from $75-$85/mt CFR at last report.

Sulfur

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

Tampa: The domestic sulfur market was quiet heading into the holidays, sources said, but speculation regarding the first-quarter price of molten sulfur at Tampa was rife.

While all agreed the start of negotiations was still some time away, many said they expected a modest rise based on recent increases in the Chinese and Middle Eastern markets. Others, however, said those prices were unlikely to be sustained and a first-quarter increase was far from cut-and-dried.

Molten sulfur delivered to Tampa was $129/lt CFR for the fourth quarter.

U.S. refinery utilization fell last week, posting its first weekly decline since Oct. 24. Domestic refiners ran at 93.5 percent of capacity for the week ending Dec. 12, according to the U.S. Energy Information Administration, down 1.9 percent from the previous week’s 95.4 percent, but up from 2013’s 91.5 percent and the five-year average of 89.9 percent.

Average daily refinery inputs fell commensurately. Inputs averaged 16.301 million barrels/d for the week, a decline of 326,000 barrels/d from the previous week’s 16.627 million barrels/d.

U.S. Gulf: The Gulf sulfur market was quoted in a range of $135-$140/mt FOB, unchanged from the previous week.

Vancouver: Vancouver spot was steady at levels above $140/mt FOB. Sources expected little or no further spot activity before the New Year. Fourth-quarter contracts were quoted in a range of $140-$150/mt FOB.

Alberta refiner Syncrude 21 was said to be online and loading sulfur again last week following the latest in a series of extended production interruptions at the facility. The refinery, boasting an approximate 2,000 mt/d capacity, was beset by unplanned outages throughout 2014.

The price of Alberta sulfur was quoted in a range of (-)$10-$75/mt.

West Coast: Sulfur sold from the West Coast was called $135-$140/mt FOB.

Fourth-quarter molten contracts were $90-$130/lt FOB.

Benelux: The third-quarter price of sulfur in the Benelux region was $158-$172/mt FOB.

ADNOC: The December sulfur price was $150/mt FOB at Abu Dhabi. January 2015 sulfur was offered at $158/mt FOB.

Aramco: Sulfur sold by Saudi Aramco was set at $158/mt FOB for January 2015, a $33/mt increase from December’s $125/mt FOB.

Potash

China, Eastern Cornbelt, Market Watch, Potash Muriate, Southeast, Southern Plains, Sulfate of Potash Magnesia, U.S. Gulf, Western Cornbelt

U.S. Gulf: Potash barges spanned a broader range and were called $368-$375/st FOB.

Eastern Cornbelt: Potash was steady at $405-$415/st FOB in the Eastern Cornbelt, depending on grade and location.

Western Cornbelt: The potash market was steady at $405-$412/st FOB most warehouses in the Western Cornbelt, depending on grade, with $410/st FOB quoted as the common red granular price.

Southern Plains: Potash was steady at $405-$410/st FOB regional warehouses in the Southern Plains. The Carlsbad, N.M., potash market remained at posted levels of $405/st FOB for 60 percent standard, $410/st FOB for 60 percent granular and 62 percent standard, and $417/st for 62 percent granular.

Sulfate of potash magnesia remained at $365-$380/st FOB Carlsbad in December, depending on grade. Effective Jan. 1, Intrepid’s Trio postings FOB Carlsbad will firm to $375/st for standard, $385/st for granular, and $390/st for premium grade. Those levels reflect a $10/st increase from the previous list prices.

South Central: Potash was steady at $405-$410/st FOB warehouses in the South Central region.

Southeast: Sources continued to quote rail-delivered potash in the Southeast at the $410-$420/st level for Canadian tons, with the warehouse market at $407-$415/st FOB, depending on grade and location.

There continued to be reports of Chilean and Israeli potash imports available at lower levels on the East Coast, but no actual prices were confirmed last week.

China: The 2015 export duty for SOP remains the same as this year at RMB 600/mt (US$ 96.95/mt).

Phosphates

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

Central Florida: Traders reported increased activity in the Central Florida spot market last week, though a decline in prices accompanied the flurry. DAP railcars were quoted down to $425/st FOB, while trucks continued to enjoy a moderate premium.

Some attributed the pop to increased end-user demand and strength in the futures market, where corn contracts have recently trended upward. Others believed freight played a role as well.

Rail operator CSX announced across-the-board increases of $5-$10/st on all railcars out of Florida beginning Jan. 1, 2015, sources said. One market veteran speculated that the price bump stirred buyers to action so as to avoid paying the increase. The rush to complete purchases in the current tax year also likely provided motivation.

CSX’s new pricing was unlikely to significantly affect buyers in New England, one trader said, but the increase didn’t help Florida traders offering farther west. “If you’re just about anywhere in the Midwest, you’re better just buying off the river,” he said. “Rail can’t compete.”

The Central Florida DAP market was quoted in a range of $425-$435/st FOB, down from the previous week’s range of $430-$435/st FOB. MAP commanded a $20/st FOB premium over DAP. Sources expected January DAP to rise by about $5/st FOB.

U.S. Gulf: The NOLA barge market continued to firm heading into the holidays, extending a bullish trajectory that began in late November. DAP transactions were concluded as low as $425/st FOB early in the week before rising to about $430/st FOB. Full January material moved as high as $435/st FOB.

MAP continued to draw little interest compared to DAP, and was called $440-$445/st FOB.

Supply has roundly been touted as the prime mover behind the market’s recent upswing. Between Mosaic’s decision to cut phosphate production in the fourth quarter, a relative dearth of imports following a glut in the fall, and Mississippi Phosphates Corp.’s announcement that it would halt production following in the wake of filing for Chapter 11 bankruptcy protection, sources have consistently pointed to thin barge availability at NOLA as pushing up prices.

Last week was no different, though demand-side factors may have begun to exert some influence as well, some observers noted. “(The market) is still supply driven, that hasn’t changed,” said one contact. “But we could see it switch to a demand-driven market.”

Citing a number of factors, including an uptick in terminal demand for the week and strength in the price of corn, a number of sources spoke of a renewed sense of conviction permeating the market. “People are starting to feel more comfortable,” one source said. “There’s much more confidence in the market than there was a month ago.”

NOLA spot market prices were quoted in a range of $425-$430/st FOB for DAP, an increase from the previous range of $417-$425/st FOB. MAP was called $435-$445/st FOB.

Eastern Cornbelt: DAP pricing was unchanged at $460-$475/st FOB regional warehouses in the Eastern Cornbelt, with the low reported at Cincinnati. MAP was pegged in the $475-$500/st FOB range in the region, depending on location.

10-34-0 was quoted at $520-$540/st FOB for limited tons in the region.

Western Cornbelt: DAP was tagged at $460-$470/st FOB regional warehouses, up $5/st from last report, with MAP reported at $485-$495/st FOB in the Western Cornbelt. A Nebraska source quoted delivered MAP at the $515/st level or higher last week.

10-34-0 remained “very strong” at $520-$540/st FOB in the Western Cornbelt, but tons were “hard to come by,” according to one regional contact.

Ammonium Sulfate

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

Eastern Cornbelt: Granular ammonium sulfate remained at $300-$310/st FOB in the Eastern Cornbelt, with delivered tons in the $310-$320/st range.

Ammonium thiosulfate was steady at $345-$355/st FOB in the region.

Western Cornbelt: The granular ammonium sulfate market was pegged at $290-$310/st FOB in the Western Cornbelt, with the low reported in Missouri and the upper end in Iowa.

Ammonium thiosulfate was quoted at $300-$320/st FOB in the region.

Southern Plains: American Plant Food Corp. (APF) announced new ammonium sulfate postings, effective Dec. 8, which reflect a $10/st increase from the company’s Oct. 1 list prices. APF granular postings in Texas firmed to $250/st FOB Freeport, $260/st FOB Galena Park, $275/st FOB Fort Worth, and $285/st FOB Littlefield.

APF’s coarse grade postings firmed to $240/st FOB Freeport, $250/st FOB Galena Park, $265/st FOB Fort Worth, and $275/st FOB Littlefield, while standard grade ammonium sulfate postings moved to $230/st FOB Freeport and $265/st FOB Littlefield. APF’s N-Pac Compacted posting firmed on Dec. 8 to $260/st FOB Galena Park.

The ammonium thiosulfate market had inched up some $5-$10/st from last report, to $285-$300/st FOB in the Southern Plains region, depending on location.

South Central: Granular ammonium sulfate pricing had reportedly inched up to $275-$280/st FOB in the South Central region, with the low reported in Louisiana and the upper end in Tennessee and Arkansas. APF’s reference price FOB Mermentau, La., firmed on Dec. 8 to $275/st.

Ammonium thiosulfate was pegged at $310-$320/st FOB in the region.

Southeast: The granular ammonium sulfate market remained at $265/st FOB Hopewell, Va., and Augusta, Ga., with delivered tons reported at $270/st in the Carolinas, $280/st in Georgia, and $295/st in Florida.

Standard grade ammonium sulfate was referenced at $210/st rail-DEL in Florida.

Ammonium Nitrate

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

U.S. Gulf: The NOLA barge market remained at $305/st FOB. Sources doubted that this number would win any business, however, and there was speculation that sellers would have to come off a bit to pull a new order.

Western Cornbelt: Ammonium nitrate was steady at $350-$360/st FOB in the Western Cornbelt.

Southern Plains: The Tulsa ammonium nitrate market remained at $350/st FOB.

South Central: Ammonium nitrate was tagged at $350-$360/st FOB terminals in the South Central region, up $5/st from November pricing levels.

Southeast: The Tampa ammonium nitrate market was pegged at $365-$370/st FOB.

Scotts Miracle-Gro Co. – Management Brief

Management Briefs

The Scotts Miracle-Gro Co. said Dec. 19 that Barry Sanders, president and chief operating officer, will depart the company Jan. 31, 2015, as part of an ongoing effort focused on de-layering the company to improve operational efficiency and speed to market. Since the beginning of the current calendar year, the company said it has eliminated approximately 25 percent of its leadership roles at the senior vice president level or higher. The company intends to have completed the vast majority of these efforts by the end of the first half of fiscal 2015.

Mike Lukemire, who currently leads the North American consumer business, will become chief operating officer. The entire global consumer segment will report to Lukemire, as will Scotts LawnService. Strategic planning will report to Chairman and CEO Jim Hagedorn.

Jim Gimeson will assume sole leadership of Scotts LawnService. Gimeson and Mark Wilhelmi have been co-leaders of this business since last summer as part of a transition plan related to Wilhelmi’s planned retirement after 40 years with the company.

Lukemire joined Scotts in 1995. He had 16 years of business unit and operations management experience before joining the company, with stints at Nabisco, Kraft-General Foods and Kroger. He earned bachelor’s degrees in chemistry and biology at Georgetown College (Kentucky), and attended the Kraft Executive Management School at Southern Methodist University.

Gimeson joined Scotts in 2008. Previously, he was president and chief operating officer for the Longaberger Co., a leading direct marketing company of home décor products. He earned a bachelor’s degree from Muskingum University and completed his MBA at The Ohio State University’s Max M. Fisher College of Business.

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.

For additional details visit our Terms of Use.