Inter-Chem, Tulsa, reports that John Bergeron has joined its sales team. He brings 22 years of fertilizer industry sales experience, most recently in industrial nitrogen sales with CF Industries Holdings Inc. He will be based in Baton Rouge, and will manage a portfolio of national industrial accounts, as well as agricultural accounts in the Southeast U.S. Bergeron can be reached at 225.766.5014, or via email at jbergeron@ictulsa.com.
Sources report that STC has issued an award to Aires for 60,000 mt of urea at $266/mt CFR to be unloaded at Krishnapatnam. An additional 90,000 mt is reportedly ready to be awarded for Iranian tons.
The STC action comes following its counterbids to the June 18 urea tender. The bids were $266-$269/mt CFR for East Coast ports, and $268-$271.75/mt CFR for West Coast ports. STC included Emirate dinar equivalents in its bids. West Coast urea is expected to be all Iranian.
Sources report that companies offering Chinese material have mostly rejected the STC counterbid. Reportedly the Chinese producers have dug in their heels at $260/mt FOB.
In a statement issued June 19, the Chinese Nitrogen Fertilizer Industry Association said matching the Aries price would force Chinese companies to face losses of as much as 80 percent on each ton sold. The statement further denounced the low price as “dumping” and called on its members to take action to boost market confidence.
The rejection of support by the Chinese producers could leave STC with only 150,000 mt out of an expected purchase of 1.5 million. Sources confirmed over the weekend that a new tender will have to be held quickly to meet the urea needs of Indian farmers. Some argue, however, that the small purchase from the STC tender could be enough to hold off panic buying long enough to ensure that no spike in price occurs when the next tender is called.
LaPorte, Ind. — Helena Chemical Co., Collierville, Tenn., has purchased a parcel of land to become the first customer in the new Inland Logistics Port (ILP) at the 800-acre Kingsbury Industrial Park in northwest Indiana, according to the Halfwassen Group LLC, an Indiana real estate investment company that has developed the ILP. J. Shoffner General Contractors will be the general contractor of the project and will use all local workers. “Helena plans to continue to service our customers with better and more efficient facilities in the LaPorte and surrounding counties area. We are very excited about the site we have chosen and the support of the community that we have received,” said Helena Division Manager Doug Goff, who is based in Carmel, Ind. “Our employees and our customers should see a real significant difference in our facility and workplace safety and speed together.” As an essential requirement of the transaction, nearly 2,500 feet of new railroad right-of-way was extended through the new lot from the existing active railroad line serviced by the Chicago South Shore & South Bend Railroad. Future plans show the railroad line also connecting to the newly-constructed rail spur leading to the CSX mainline tracks. In 2012, CSX gave the ILP its CSX Select Site certification. It is the only CSX Select Site in Indiana and the only such site serving the Chicago region.
U.S. Gulf/Tampa: There was nothing new to report in the Tampa market last week. July business had not been reported at press time. Sources reported that Trinidad is expecting significant gas curtailments in July-August, maybe as much as 20-30 percent. This could lead to more pressure on Tampa, or at least prod another rollover.
July NYMEX prices closed June 19 at $4.584/mmBtu, down from the June 12 close of $4.762/mmBtu.
Eastern Cornbelt: The anhydrous ammonia market in the Eastern Cornbelt was transitioning from a prompt pull market to fall prepay.
Illinois sources continued to report sales for prompt June tons at the $650/st FOB level last week, while fall prepay business had reportedly been concluded at the $580/st FOB level out of some Illinois terminals as the week progressed. “If Mother Nature is kind to us, we should have a good fall season,” said one contact.
Mother Nature was not particularly kind to the region last week. Strong thunderstorms moved through central and northern Indiana on June 18-19, producing 60-65 mph winds, large hail, and heavy rainfall. The powerful storm system also pushed into northern and central Ohio, producing up to 2.5 inches of rainfall and golf ball-sized hail in some locations.
The moisture slowed the completion of soybean planting in the region, which had progressed to 91-94 percent complete as of June 15. The combination of planting and sidedress activities has given the spring season a long tail, however, prompting one Ohio source last week to wonder “how many spring seasons” he’d been through this year.
Western Cornbelt: A powerful line of thunderstorms rolled through parts of the Western Cornbelt and Northern Plains regions at midweek, producing torrential rains and at least one tornado in southeastern South Dakota.
Minneapolis, Minn., received more than 6 inches of rain in just 8 hours at midweek, with June 19 registering as the wettest June day in the city’s history. The storm system caused record flooding along parts of the Big Sioux River in South Dakota and western Iowa, and also produced rapid rises on the Missouri and Rock Rivers in Iowa.
The wet month of June continued to reduce drought levels in the Western Cornbelt. Only small patches of severe drought remained in central and southern Nebraska, according to the June 17 U.S. Drought Monitor. Areas of the region that were completely drought-free in mid-June included western Nebraska, eastern Missouri, and virtually all of Iowa.
Anhydrous ammonia remained in a broad range at $570-$645/st FOB in the Western Cornbelt, depending on location and time of delivery, with the low in Nebraska and the high in Missouri.
California: Anhydrous ammonia was unchanged at $720/st DEL in California, with aqua ammonia referenced at the $195/st FOB level in the state.
Drought conditions in California intensified in early June, fueled by reports that the first five months of 2014 were the hottest on record for the state. The June 17 U.S. Drought Monitor showed the northern three-quarters of the state in extreme to exceptional drought, with southern California experiencing severe drought conditions.
Pacific Northwest: Cool, wet weather settled over parts of the Pacific Northwest in mid-June, although severe to extreme drought conditions persisted in areas of southern Idaho and southern Oregon, according to the June 17 U.S. Drought Monitor. Moderate to severe drought was also reported in eastern Washington at mid-month.
Sources quoted the anhydrous ammonia market at $750-$780/st DEL in the Pacific Northwest for new sales, with the low for railed tons and the upper end for truck-DEL material. Reference prices were in the $750-$800/st DEL range, with the up
U.S. Gulf: Granular prompt barge prices continued to be strong last week, with new trades reported at $330-$365/st FOB. Sources said there is still good demand for cotton and rice, with a good spurt of demand arising just before additional imports were expected into NOLA, boosting prices.
Good quality granular moving upriver was said to be trading in the $360-$370/st FOB range, with Chinese product reportedly sold at $343/st FOB.
While Chinese product was called in the low $300s/st FOB for July, other granular was said to be working its way up, from $310-$315/st to $320-$330/st FOB.
Prills were in tight supply and called $320-$335/st FOB.
Eastern Cornbelt: Granular urea pricing covered a broad range in the Eastern Cornbelt, from a low of $380-$390/st FOB out of river terminals in the Illinois market to a high of $420-$425/st FOB on a spot basis in Ohio. Sources said the Cincinnati market was out of urea at mid-month.
Western Cornbelt: Urea applications on rice continued in southern Missouri at mid-month, with the terminal market commonly quoted at $380-$385/st FOB in that state. The upper end of the regional range was reported at the $400-$410/st FOB mark in Iowa on a spot basis.
California: Granular urea pricing was quoted at $460-$465/st FOB Stockton, with the low end of the regional market pegged at $450/st FOB Modesto. No current price quotes were reported for delivered urea in late May.
Pacific Northwest: Granular urea pricing had reportedly slipped to $430-$440/st FOB Portland, Ore., down some $40/st from late May levels. Delivered urea in the Pacific Northwest was down as well, with sources quoting $465-$475/st as the common dealer market for new sales in mid-June.
Western Canada: Mid-month rains were reported throughout Manitoba, with heavy rainfall reported in southern Saskatchewan and southern Alberta on June 18. Flood watches were issued for a number of rivers in both provinces as a result.
The wet weather continued to delay planting in some areas, with officials warning that up to 400,000 hectares may go unplanted in Manitoba this year. Saskatchewan growers were in better shape, with 95 percent of the 2014 crop seeded by mid-month. Cool weather has delayed crop development in the province, however.
The granular urea market was reportedly shifting from prompt demand to summer fill, with summer fill offers reported in the $470-$500/mt DEL range in the region.
India: Industry watchers expected the STC tender to have a lot of tons offered and purchased. Sources now say that one out of two isn’t bad.
Hopes that up to 1.5 million mt would be purchased by STC were dashed when the final offers were revealed. While most offers were in the low $270s/mt CFR, one offer – from Aries – came in at $266/mt CFR for East Coast delivery.
Sources say most other offering companies will be hard-pressed to match the Aries offer. The netback to China on the Aries offer is pegged at $250-$253/mt FOB. Sources say in the run up to the tender, prilled urea had moved out of the upper $240s/mt into the low $250s/mt FOB. One trader said no material was available for less than $250/mt FOB at present.
The Indian buyer may allow some wiggle room on the final price based on the discharge port, but only a dollar or two at most.
Sources are saying that unless the Chinese producers accept dramatically lower prices, STC may only pick up 300,000-500,000 mt from this tender.
Aries offered 110,000 mt of Chinese material firm, and an equal amount as optional. Swiss Singapore had an offer of Iranian material at $270/mt CFR, with others ranging from $272-$275/mt CFR. The Swiss offer was for 225,000 mt fi
U.S. Gulf: The market was reported in the $218-$240/st ($6.81-$7.50/unit) FOB range, reflecting recent large trades as well as the CF fill program reported last week. Most put the CF fill numbers within the $235-$240/st FOB ($7.34-$7.50/unit) FOB range.
Many sources said the market was waiting for CF fill numbers in order to move. A good response was reported, though sources wondered how many of those tons will actually be available in NOLA right away, as CF has committed to ship significant quantities into the export market.
Import players were also waiting on CF numbers, and sources said East Coast price ideas went up as a result. While sources called the most recent number $250/mt CFR, sellers were now reportedly quoting $260-$265/mt CFR.
Some speculated that gas curtailments in Trinidad for July-August might impact Helm production there. That said, Helm was in turnaround in Trinidad most of the summer last year, so on a year-to-year basis, 2014 imports from there should be up by comparison.
At least one Chinese UAN cargo is expected into NOLA soon.
Eastern Cornbelt: The announcement of a fill program for UAN resulted in significantly lower UAN prices in the region. Eastern Cornbelt sources described the UAN market as essentially two-tier, however, with the low numbers for new fill offers and the upper end for prompt cash market tons that were still being pulled for steady sidedress demand in some locations.
For example, the UAN-28 market FOB Cincinnati, Ohio, was quoted in the $265-$275/st ($9.46-$9.82/unit) range for prompt pull, while fill program offers out of the Cincinnati market were reported as low as $246-$247/st ($8.79-$8.82/unit) FOB last week.
Similarly, other fill program offers in the region last week included UAN-32 at $278.40/st ($8.70/unit) FOB Peru, Ill., $280/st ($8.75/unit) FOB East Dubuque, Ill., and $281.60/st ($8.80/unit) FOB Albany, Ill.
Western Cornbelt: Sources said CF announced a fill program for UAN-32 that reportedly garnered a lot of attention, with pricing reported at $235-$240/st ($7.34-$7.50/unit) FOB NOLA for barge quantities, $255/st ($7.97/unit) FOB Oklahoma production points, and roughly $280/st ($8.75/unit) FOB Midwest terminals, give or take. Several sources said the company promptly pulled the program after selling the quantities they intended, however.
Regional sources continued to report prompt UAN-32 pricing at the $330/st ($10.31/unit) FOB level at the upper end of the range, with continued demand for sidedress tons. “We have not adjusted our price yet, and will wait until the season is over,” said one source. Added another, “Sidedress is winding down, so values will continue to soften on prompt tons.”
California: Sources reported continued movement of UAN and urea in liquid and dry blends in parts of California last week. Inventories of both products were in short supply in the state. “Movement is slowing down significantly now, but the season has been better than anyone could have anticipated given the drought conditions,” said one contact.
The UAN-32 market remained at $315-$320/st ($9.84-$10.00/unit) FOB most terminals in California, with delivered product pegged in the $340-$360/st ($10.63-$11.25/unit) range, depending on location. There were reports of UAN-32 fill being offered for as low as $315/st ($9.84/unit) rail-DEL to the West Coast, though that program was not confirmed.
Pacific Northwest: The UAN-32 market was quoted at $365-$375/st ($11.41-$11.72/unit) DEL in the Pacific Northwest, down $10-$20/st from last report. Effective June 10, IRM’s UAN-32 posting dropped to $375/st ($11.72/unit) DEL in eastern Oregon and Washington, down $20/st from the company’s May 13 publis
Tar Heel, N.C. — More than 2,400 employees of the giant Smithfield Foods Inc. pork processing plant here were evacuated the morning of June 17 after a large hot water tank fell and loosened ammonia pipelines. While the company was reported as saying the leak was minor and quickly contained, local media reported that some employees passed out and between 15-40 were taken to local hospitals or received treatment from emergency responders. After walking one mile to flee the plant, workers were bused back later in the day to retrieve their vehicles. The plant was reportedly slated to reopen June 20. Smithfield had not responded to inquiries by press time.
U.S. Gulf: The market remained quiet, with the last done business still called $350/st FOB. Imports have reportedly mostly been snapped up, but demand has fallen off, according to some sources, who argued that prices should be coming down.
Western Cornbelt: The ammonium nitrate market remained at $400-$405/st FOB for the last sales in the Western Cornbelt.
California: No market was reported for agricultural ammonium nitrate in California.
CAN-17 was pegged at $320-$340/st FOB in the state, depending on location and supplier, with the low end of the range FOB Stockton.
The AN-20 market remained at $305-$310/st FOB and $315/st DEL in California.
Pacific Northwest: No market was reported for agricultural ammonium nitrate in the region.
CAN-17 was pegged at $348/st FOB in the Pacific Northwest, with delivered tons quoted at the $360/st level in Washington.
Eastern Cornbelt: Granular ammonium sulfate remained at $295-$305/st FOB in the Eastern Cornbelt. Sources said they anticipate no pricing changes until a fill program is announced.
Ammonium thiosulfate was steady as well at $345-$350/st FOB in the region.
Western Cornbelt: Granular ammonium sulfate was steady at $280-$300/st FOB in the Western Cornbelt.
Ammonium thiosulfate was quoted in the $320-$335/st FOB range in the region.
California: Ammonium sulfate was quoted in a broad range at $240-$280/st FOB in California, depending on location, supplier, and grade. IRM’s posting for WesternStandard ammonium sulfate moved on May 28 to $240/st FOB Chico and Woodland. Central Valley sources quoted rail-delivered tons at the $255/st level in late May.
Ammonium thiosulfate was steady at $300/st FOB Stockton.
Pacific Northwest: Granular ammonium sulfate was steady at $265-$280/st FOB and $275-$285/st DEL in the Pacific Northwest depending on location.
Ammonium thiosulfate remained at $310-$330/st FOB in the region, with delivered tons pegged at the $345/st level in Washington.
| Ammonia | 540 |
| Urea (g) | 330-365 |
| Urea (p) | 320-335 |
| DAP | 430-440 |
