All Posts from March 23, 2015

Nitrogen Solutions

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

U.S. Gulf: Recent trades were put in the $255-$262/st ($7.97-$8.19/unit) FOB range.

Vessels continued to be called somewhere between $280-$285/mt CFR, with buyers pushing for $275/mt.

Eastern Cornbelt: UAN-28 pricing was unchanged at $270-$280/st ($9.64-$10.00/unit) FOB in Ohio and Indiana, with the low in Cincinnati and the upper end FOB Burns Harbor, Ind. UAN-32 was steady at $310-$320/st ($9.69-$10.00/unit) FOB in Illinois, with rail-delivered tons quoted at $325-$330/st ($10.16-$10.31/unit) in the Eastern Cornbelt.

Western Cornbelt: UAN-32 pricing in the Western Cornbelt was unchanged at $305-$320/st ($9.53-$10.00/unit) FOB regional terminals, with the low reported in southeastern Missouri and the upper end in the Iowa market. One Nebraska contact pegged the common dealer market at the $315/st ($9.84/unit) FOB level for March tons.

Southern Plains: UAN-32 was steady at $285-$300/st ($8.91-$9.38/unit) FOB in the Southern Plains, with the low out of Gulf Coast terminals and the upper end out of regional production points on a spot basis.

South Central: The UAN-32 market remained at $290-$305/st ($9.06-$9.53/unit) FOB terminals in the South Central region, with the low reported at Memphis.

Southeast: Driven by a softer vessel market, UAN-30 pricing out of port terminals in the Southeast had reportedly slipped to $260/st ($8.67/unit) FOB on the low end. Sources continued to report the upper end of the UAN-32 market at the $280-$283/st ($8.75-$8.84/unit) FOB level in the region.

Crops/Weather

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

Grain Futures: As of 4 p.m. on March 19, wheat futures were higher compared to the week before, but corn and soybeans were down.
May 2015 corn was posted at $3.735/bushel, down from the previous week’s $3.885/bushel, and corn for July 2015 was $3.815/bushel, a decrease from $3.9575/bushel the week before. Contracts for December 2015 corn fell to $3.99/bushel from the prior week’s $4.1175/bushel.

Soybean prices for May 2015 were $9.6175/bushel, down from $9.905/bushel the week before. July 2015 soybeans slipped to $9.6675/bushel from the prior week’s $9.94/bushel, and November 2015 soybeans were quoted at $9.4625/bushel, down from the prior week’s $9.675/bushel.

May 2015 wheat punched in at $5.12/bushel, up from $5.0725/bushel the week before. July 2015 wheat contracts traded at $5.1575/bushel, also up from the previous week’s $5.095/bushel, while wheat for September 2015 firmed to $5.2475/bushel from the prior week’s $5.185/bushel.

Eastern Cornbelt: The spring thaw was on in the Eastern Cornbelt last week, contributing to rapidly rising river levels and flooding in some locations. Ohio River levels reached a 20-year high in the Cincinnati area last week, while massive ice chunks created ice dams and caused flooding along the Maumee River in the Toledo area.

Western Cornbelt: Warm, dry weather resulted in brisk fertilizer activity in parts of Nebraska, western Missouri, and Iowa last week, although rain and wet field conditions continued to slow the pace in southern Missouri.

Southern Plains: Sources reported a flurry of fieldwork in Kansas last week, but another round of moisture slowed the pace in Oklahoma, Texas, and New Mexico.

Brisk fertilizer movement was reported in Kansas ahead of corn planting, but steady rainfall kept activity to a minimum in Oklahoma as the week advanced. Northern Texas also caught a fair bit of moisture last week, which slowed the planting of corn and other crops in the state.

Perhaps the region’s heaviest precipitation was reported in New Mexico last week, particularly in central, northeastern, and eastern areas of the state. The regional moisture was appreciated; the U.S. Drought Monitor for March 17 showed extreme to exceptional drought conditions in northern Texas and western Oklahoma, with moderate to severe drought covering western Kansas, southern Colorado, and the northern half of New Mexico.

South Central: Field activities remained on the backburner in much of South Central region due to wet weather. “We’ve been dead in the water and can’t wait to get to the field,” said one regional contact at midweek. “If we can miss the moisture for the next couple of days, then the dust will fly.”

Other sources said their locations would need at least a week “of good sunshine” before fieldwork begins in earnest. “This late start will more than likely cause spot outages going forward, and set us up for a very busy spring,” said one contact. “There’s hardly any activity at terminals or barges, with buyers sitting on the sideline hoping for lower numbers.”

Southeast: Another storm was threatening to bring rain and wet snow to northern Virginia as the week advanced, along with heavier accumulation in the Northeast. The latest system caps one of the coldest and snowiest winters on record for much of the Eastern U.S., although southern Florida was enjoying temperatures in the 80s last week.

Fieldwork was starting to break loose in the Southeast last week, although wet conditions continued to limit activity in some areas. “We’re trying to hit the high spots, but it’s still very wet,” said one Carolina c

Sulfur

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

Tampa: Representatives from the United Steelworkers union (USW) tentatively agreed to terms for an updated labor contract from lead oil company negotiator Shell Oil Co, according to reports, potentially signaling an end to the first countrywide refinery strike in 35 years.

The four-year employment contract would set pay raise schedules and trigger a review of staffing thresholds geared toward increasing maintenance and repair safety levels. The agreement would also freeze oil company contributions toward health care packages at levels set in the previous contract.

However, local USW workers at eight of the 15 striking facilities failed to immediately ratify the deal, citing issues left unresolved by the overarching agreement. Local settlement talks were ongoing at those locations.

Workers at the nation’s largest refinery, Motiva Enterprise’s Port Arthur, Texas, facility, approved the deal on March 18, and Tesoro’s three striking California refineries were close to accepting as well, reports indicated. Workers were likely to begin returning to work in late March.

The news of a potential resolution had many sulfur industry contacts assessing the state of refinery turnarounds, many of which were postponed in the wake of the strike.

A malfunctioning fluid catalytic unit at BP’s 413,000 barrel/d refinery at Whiting, Ind., is projected to stay offline for weeks while repairs are made, sources said. The unit is one of two in operation at the facility.

Domestic refinery capacity increased last week, according to the U.S. Energy Information Administration (EIA). Utilization for the week ending March 13 was 88.1 percent, a 0.3 percent increase from the prior week’s 87.8 percent, and also higher than last year’s 85.6 percent and the five-year average of 84.7 percent.

Average daily crude inputs increased to 15.436 million barrels/d, a 136,000 barrel/day bump from the previously reported 15.300 million barrels/d.

The first-quarter contract price of molten sulfur delivered to Tampa was $147/lt.

U.S. Gulf: Sulfur exported from the Gulf of Mexico was called $150-$155/mt FOB based on last done into Brazil, down from $160-$165/mt FOB at last report.

Vancouver: A number of sources reported softening in the Vancouver spot market last week. Prices were quoted in the mid $150s-$160s/mt FOB based on $165-$170/mt CFR levels at China. The previous range was $165-$175/mt FOB.

Alberta sulfur was quoted in a range of $5-$85/mt FOB.

West Coast: The West Coast price followed the Vancouver drop, with sources indicating a range of $150-$160/mt FOB. California molten sulfur contracts were $90-$130/lt FOB for the first quarter.

ADNOC: Sulfur was priced at $175/mt FOB for March.

Aramco: The April price of sulfur produced by Saudi Aramco was $165/mt FOB, down $10/mt from March’s $175/mt FOB.

Tasweeq: Qatar sulfur was offered at $164/mt FOB.

Potash

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

U.S. Gulf: Most players said the last done business was at $355/st FOB, at best. Sources said if you wanted more than one barge, you could likely get a lower price.

Eastern Cornbelt: Potash was tagged at $395-$410/st FOB regional warehouses in the Eastern Cornbelt, depending on grade and location, with the low end of the range reported in the Cincinnati market last week.

Western Cornbelt: Potash was quoted in the $400-$410/st range out of most regional terminals in the Western Cornbelt, indicating a slight drop from last report. One source quoted red potash in the $405-$410/st range FOB Sioux City, Iowa, and Council Bluff, Neb.

Southern Plains: Potash was pegged at $390-$395/st FOB in the Tulsa market, down $10/st from last report, though the low end of the range was reported after netbacks on delivered prices.

The Carlsbad, N.M., potash market remained at reference 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. Sources acknowledged, however, that lower prices in the Tulsa market would likely be met by delivered tons from the mine when potash demand starts to accelerate in the region. “We need spring to actually break and get the product to the field,” said one source.

Effective March 30, Intrepid’s Trio postings FOB Carlsbad, N.M., are slated to firm to $385/st for standard, $395/st for granular, and $400/st for premium. Those levels represent a $10/st increase from the company’s previous list prices.

South Central: Potash remained flat in the $395-$400/st FOB range out of warehouses in the South Central region.

Southeast: Imported potash tons were quoted at $385-$395/st FOB port terminals last week, reflecting another drop from last report. Canadian tons were pegged in the $410-$417/st rail-DEL range in the Southeast, with the low for red and the upper end for white granular.

China: Belarusian Potash Co. (BPC) said on March 19 that it has reached an accord with the Consortium of the Chinese buyers regarding a price increase to $315/mt CFR for shipments of MOP to China in 2015. The new price is a $10/mt increase on the year-ago contract of $305/mt CFR. BPC said volumes are still under discussion. While BPC is indicating the contract is for all of 2015, others last week were speculating that it may just be for the first half.

“Overall, a pending Chinese contract affected the potash market adversely and put pressure on the market situation in other regions,” said BPC Director General Elena Kudryavets. “Signing the contract later than the end of March would be detrimental to the market. The accord reached by the parties will undoubtedly serve as a positive signal to the potash market, and will vitalize it, adding stability and confidence to the market players. We have convinced the Chinese partners that our pricing approach is justified and that a price increase is mandatory, which is relevant in the current market situation. We believe that this event is another huge accomplishment of JSC Belarusian Potash Co.”

Competitors, however, were not in agreement. Uralkali Head of Sales and Marketing Oleg Petrov said the contract price agreed between BPC and Chinese importers is significantly lower than the expected result.

“Uralkali and Canpotex have been in negotiations with the Chinese to obtain a price increase two to three times more than Belarusians ($30/mt and $25/mt, respectively),” Petrov said in an emailed statement. “The increase of $10 is symbolic and will not provide the necessary support for the market. By waiting 2-3 weeks longer, the suppliers could have concluded a much more

The Week in Fertilizer Stocks

Fertilizer Stocks

The Week in Fertilizer Stocks

Producer Symbol Price Week Ago Year Ago
Agrium AGU 106.95 110.72 93.88
CF Industries CF 290.03 291.90 252.30
CVR Partners UAN 13.71 13.95 20.69
Intrepid Potash IPI 10.94 11.94 15.04
Mosaic MOS 46.33 47.74 48.93
PotashCorp POT 32.04 32.77 34.50
Rentech Nitrogen RNF 15.92 14.67 17.79
Terra Nitrogen TNH 140.91 148.29 156.27
Distribution/Retail
Andersons Inc. ANDE 39.62 40.18 56.16
Deere & Co. DE 88.08 90.18 87.29
Scotts SMG 68.00 68.52 59.58

Phosphates

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

Central Florida: Central Florida phosphate traders continued preparations to supply the spring growing season, but active transactions were few and far between. Trader offers for rail-loaded DAP were quoted at $445/st FOB, while DAP shipped by truck was $5/st higher. Producer tons started at $440/st FOB. MAP commanded a $20/st FOB premium to DAP.

Cold, wet weather continued to limit fieldwork in the eastern U.S. “It was warming up,” said one trader, “but now they are expecting a bit of snow coming up.”

Sources called the Central Florida DAP market $440-$450/st FOB, unchanged from the previous week. MAP remained at $460-$470/st FOB.

U.S. Gulf: It was another slow week on the NOLA barge market. Confirmed early week transactions registered as high as $425/st FOB for prompt, but $421/st FOB barges were on the books as of March 19, with a number of sources quoting bids topping out at $417-$418/st FOB for the next round of business.

MAP offers were quoted from the mid-$420s/st FOB into the low $430s/st FOB, though no concluded transactions were reported.

April barges were called about $5/st lower than prompt, and April paper traded down to $410/st FOB.

Sources pinpointed the prompt DAP barge sales valued at $421/st FOB as having moved the market down. “It’s mostly the hedgers,” said one source. “They need to sell a certain number of barges. And they will, no matter the price.”

For weeks the market has faced downward pressure from the looming arrival of at least 160,000 mt of imported DAP and MAP. The expected arrival of the vessels comes at an inopportune time, with the market waiting for the spring planting season to get underway.

The large number of Moroccan imports is suspected of playing a hefty role in the market’s backslide, but others argued that the market was overreacting. “When you think about (Mississippi Phosphates) going under, the imports are just replacement,” said one source. “There’s nothing extra. But with the river still closed and the Northeast not opening up yet, the demand just isn’t there right now.”

Fertilizer movement varied region by region, but a spike in sales from Inola-area terminals signaled active fieldwork in some locales served by that market. “In Inola, they moved over 3,000 trucks in one day,” said one source. “That’s all fertilizers combined, but it’s a sign that the terminal market is headed in the right direction.”

Sources quoted the NOLA DAP market at $421-$425/st FOB, down from $428-$435/st FOB the week before. MAP remained in a range of $430-$437/st FOB due to a lack of confirmed transactions, though traders expected the next round of business to follow the DAP market down.

Eastern Cornbelt: DAP was steady at $475-$485/st FOB regional warehouses in the Eastern Cornbelt, with the lower end of the range reported in the Cincinnati market. MAP was tagged at $480-$500/st FOB in the region.

10-34-0 was quoted at $580-$600/st FOB in the region for any available tons, but most sources said supplies were completely tapped out last week.

Western Cornbelt: DAP pricing was flat at $475-$480/st FOB most warehouses in the Western Cornbelt region, with MAP quoted in the $480-$490/st FOB range. Nebraska sources quoted delivered MAP in the $517-$520/st range for tons shipped from Catoosa, Okla.

Most sources reported that 10-34-0 was unavailable in the Western Cornbelt last week, although some claimed a few spot sales in the $590-$600/st FOB range for very limited tons. The majority of 10-34-0 contacts, however, repeated versions of the same line: “It’s not available. You can’t get it.”

So

Ammonium Sulfate

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

Eastern Cornbelt: Granular ammonium sulfate was pegged at $315-$325/st FOB and in the $320-$330/st rail-DEL range in the Eastern Cornbelt.

Ammonium thiosulfate remained at $340-$350/st FOB in the region.

Western Cornbelt: Granular ammonium sulfate remained in a broad range at $285-$325/st FOB in the Western Cornbelt, with the low reported in southern Missouri and the upper end in Iowa.

Ammonium thiosulfate was unchanged at $310-$345/st FOB in the region, depending on location. A Missouri source pegged the common dealer market at the $325/st FOB level in his trade area last week.

Southern Plains: The granular ammonium sulfate market remained at $260-$295/st FOB in Texas, depending on location. Coarse grade postings were $10/st less than granular, with standard priced some $20/st lower than granular, where available.

The ammonium thiosulfate market was steady at $295-$305/st FOB in the Southern Plains region.

South Central: Granular ammonium sulfate pricing was quoted at $270-$280/st FOB in the South Central region, down $5/st from last report, with the low reported in the Arkansas market.

Ammonium thiosulfate remained at $310-$325/st FOB in the region, with the low at Memphis.

Southeast: Granular ammonium sulfate was unchanged at $265-$275/st FOB in the Southeast, with the low at Augusta, Ga., and the upper end FOB Hopewell, Va. Delivered granular product remained at $270/st in the Carolinas, $280/st in Georgia, and $295/st in Florida. Sources reported tight granular supplies in the region last week.

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

Ammonium Nitrate

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

U.S. Gulf: Players were putting the market within the $295-$300/st FOB range. While some sellers were reportedly quoting $300/st FOB, sources said others had lowered the number to $295/st FOB. Still, there did not appear to be that much interest.

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

Southern Plains: The Tulsa ammonium nitrate market was quoted at the $345/st FOB level last week.

South Central: Ammonium nitrate was unchanged at $345-$350/st FOB in the South Central region.

Southeast: The Tampa ammonium nitrate market was quoted at $355-$360/st FOB.

Transportation

Market Watch, U.S. Gulf

U.S. Gulf: Shippers reported extended delays of 45-60 hours at Industrial Lock. Bayou Sorrel Lock was backed up as well with waits of 20-24 hours, and Algiers Lock saw 16-18 hour transit delays. Boats transiting through Port Allen Lock waited an average 2-4 hours for the week.

Intermittent closures at Leland Bowman Lock were expected to continue through March 31, and service interruptions at Calcasieu Lock were scheduled to run until April 10.

Mississippi River: Departure dates for Upper Mississippi destinations continued to be delayed last week due to icy conditions, shippers said. Departures for docks above Clinton, Iowa, were projected to begin near the end of March.

Delays of 1-2 hours were reported at Lock 27 due to main chamber work running through March 20. The site’s auxiliary lock is offline through April 15. Lock and Dam 5A was anticipated to reopen for the navigation season on March 23, and gate replacement at Mel Price Lock will keep that site’s auxiliary chamber offline through April 30.

On the Lower Mississippi, high water conditions limited tow sizes for the week. Transit times were increased as well.

Illinois River: Icy conditions continued on the Illinois River last week. Elevated water levels persisted as well, prompting LaGrange and Peoria Locks to cease locking, with both locks passing traffic as of March 19. Prior to the locking cessation, Peoria Lock saw intermittent shutdowns on March 18-19 while miter gate inspections were performed.

A buoy boat was expected to see action on March 23, beginning in the lake and then working its way downriver. T.J. O’Brien lock reopened last week following nearly two months of repair operations.

Ohio River: High water issues continued to plague the Ohio River, with transit times and tow lengths negatively affected. Loading operations were hampered at a number of docks as well.

The Upper Ohio crested last week, and the lower river was forecast to follow suit beginning around March 19-21, with the elevated levels expected to slowly diminish over the next week or two. The river was projected to crest at Cairo, Ill., on March 19 at 8.5 feet above flood stage.

River flows at both the Newburgh and J.T. Meyers Locks on the Ohio prompted the halting of locking operations, with traffic allowed to pass over the fixed weirs during daylight hours. Also at Newburgh, lock repairs between April 6 and May 19 will force intermittent shutdowns. Repairs to the auxiliary chamber at New Cumberland Lock will see that chamber offline through April 18.

The Allegheny River remained closed to navigation indefinitely due to the presence of ice and high flows, though shippers said the icy conditions were much improved.

The Kanawha River’s Winfield Lock main chamber will close for repairs March 23 through June 10, with significant delays anticipated.
On the Tennessee River, the Wilson Lock main chamber will be offline March 23-28 for stoplog liner installation, and again May 5 through June 11 for dewatering. The auxiliary chamber will be available during both closures. The Pickwick Lock main chamber will be closed for electrical work between March 23 and April 2.

Lock No. 3 on the Monongahela River will see its auxiliary chamber closed for repair April 26 through May 29, and the land chamber at Maxwell Lock will be offline for maintenance for the same duration.

Arkansas River: The U.S. Army Corps of Engineers continued to debate a Montgomery Point Lock closure proposed to run Aug. 24 through Sept. 30. Should the plan be enacted, all navigation into the Arkansas River would halt for the duration of the closure.
Additional lock shutdowns include Choteau Lock, scheduled for complete closure May 11-17, and Webbe

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