Des Moines, Iowa — An alliance called the Iowa Partnership for Clean Water has formed in response to the March lawsuit (GM March 16, p. 1) filed by Des Moines Water Works (DMWW) against three neighboring counties over nitrate pollution from farm runoff. The alliance is supported by the Iowa Farm Bureau, and its board includes Cedar Rapids Mayor Ron Corbett, Des Moines City Council member Christine Hensley, and Patty Judge, Iowa’s former lieutenant governor and secretary of agriculture. The alliance’s board said in a May news release that it will “lead the organization and the growing group of supporters who believe Iowa agriculture has been unfairly blamed for water quality issues and aim to shed light on the conservation efforts that Iowa farmers employ each day.” A new website for the alliance targets DMWW specifically for “standing in the way of progress,” and criticizes “unjustified claims and frivolous lawsuits” that “place unnecessary hardships on Iowa farmers and delay the implementation of cooperative solutions.” DMWW responded in a May 16 Des Moines Register article by calling the alliance “a political effort,” and said the group was more interested in gaining political support “than it is in engaging in meaningful, problem-solving conversation.” DMWW’s lawsuit targets the boards of supervisors for Sac, Buena Vista, and Calhoun counties, in their capacities as trustees of 10 drainage districts, for the “discharge of nitrate pollutants into the Raccoon River, and failure to obtain a National Pollutant Discharge Elimination System (NPDES) permit in violation of the Clean Water Act.” DMWW said the legal action came after recent water samples showed “extraordinarily high” nitrate levels that required the water utility to operate a costly and outdated nitrate removal facility.
Tel Aviv — An apparent breakthrough in negotiations to end the more than three-month-old strike at Israel Chemicals Ltd.’s (ICL) subsidiaries Dead Sea Works and Dead Sea Bromine Compounds fizzed out after ICL broke off talks with the unions and the Histadrut Labor Federation. Histadrut has said that it will now take the matter back to the Beer Sheba Regional Labor Court for it to decide on the crucial matter of firing workers. The two key issues that remain unresolved are an ICL demand to allow it freedom to move workers from one division to another within a subsidiary or from one subsidiary to another. ICL said in so doing it would maintain the worker’s seniority and rank, and take into account his place of residence. In exchange, ICL agreed to refrain from layoffs for the next three years. There is also a disagreement between the parties over the number of workers who will actually be laid off through voluntary retirement or layoffs. The unions are demanding the right to remove certain names from the list of layoffs. ICL CEO Stefan Borgas told analysts May 13 that the company is in no rush to resolve the strike. “So we are not actually concerned about the length of the strike, because the payback is so significant. We are willing to extend it for a few more months if need be, because the experience we’ve had in other cases, also here in Israel, has been significant and the benefits that we expect to get also are significant.”
U.S. Gulf/Tampa: Major players settled the Tampa June anhydrous ammonia market at $450/mt CFR, down from May’s $465/mt CFR. Sources had been predicting a drop based on recent weakness at some global points, most notably Black Sea.
The June NYMEX natural gas price closed May 21 at $2.949/mmBtu, down from the May 14 close of $3.008/mmBtu.
Eastern Cornbelt: The anhydrous ammonia market was quoted at $610-$620/st FOB Illinois terminals last week, with the upper end of the regional range pegged at the $630/st FOB level in Indiana.
Western Cornbelt: Anhydrous ammonia was reported in a broad range at $570-$620/st FOB in the Western Cornbelt, with the high in Missouri and the low confirmed out of Nebraska terminals. Iowa sources quoted the dealer market commonly in the $610-$615/st FOB range last week, with delivered tons reported in the low-$600s in Missouri from southern production points.
Southern Plains: Anhydrous ammonia pricing has reportedly dropped to $520-$530/st FOB Oklahoma production points, down some $20/st from last report. As spring demand ebbs in the Southern Plains, sources reported “a lot of trucks” moving ammonia from southern production points to Midwest locations.
The upper end of the regional ammonia range remained at $570/st FOB out of Kansas pipeline terminals.
Agrium confirmed a 4-5 day outage at its Borger, Texas, facility during the week, but offered no additional details other than describing the outage as “short-term.”
South Central: Anhydrous ammonia pricing had fallen to $585/st FOB Memphis, Tenn., down $5/st from last report. The upper end of the regional range was pegged at $610-$620/st FOB Henderson, Ky.
Middle East: Asian sources talked of $480/mt CFR being concluded, but without naming a buyer. At the same time, Trammo concluded a deal with Sabic at $404/mt FOB. Industry watchers say the two could be related because the freight rate is right.
Industry sources report that such a jump in pricing is against the general trend of the market, however, and may represent a one-off deal.
Black Sea: Prices are reported all over the place. Some say the market has settled at $380-$390/mt FOB, while others claim the level is $10/mt higher. At the same time, some buyers are arguing that they picked up material at $400/mt CFR for a $350/mt FOB netback.
The best guess from sources, however, keeps the Yuzhnyy market hovering at around $390/mt FOB, with a bit of softness in the air.
U.S. Gulf: Loaded granular barges and those to be loaded soon were quoted in the $350s/st FOB last week. There was more contention on pricing for barges to be loaded within the next two weeks, however, with players putting those in a broader range at $328-$345/st FOB.
While first-half June prices were generally called $328-$345/st FOB, price ideas for all June were lower at $310-$328/st FOB.
Prills were in short supply, and the most recent trades were put in the $290-$295/st FOB range. Price ideas for the next round of business were $300/st FOB or higher.
A cargo with Yara’s Libyan prills is expected into NOLA soon.
Eastern Cornbelt: The granular urea market remained at $365-$375/st FOB in the Eastern Cornbelt, with the low confirmed for spot tons in Cincinnati, Ohio.
Western Cornbelt: Granular urea had reportedly firmed to $370-$395/st FOB in the Western Cornbelt, fueled by tight supply and continued logistics issues on the river system. The low end of the range was reported in the Iowa market last week, with the upper end in Nebraska.
One Missouri source pegged the common dealer market solidly at the $380/st FOB mark out of river terminals last week.
Southern Plains: Fueled by a “rapid increase in the past two weeks,” the granular urea market was quoted at $365-$370/st FOB Catoosa and Inola, Okla., up a full $25/st from early May pricing levels. Most saw the price increase as short-term, however, owing to river logistics issues and temporary inventory issues. “What goes up will eventually go back down,” said one regional contact.
South Central: Sources described fieldwork as very quiet in the South Central region last week, although urea applications on rice are set to begin in many areas. “We should see some heavy rice applications in the next 30 days,” said one source.
Granular urea pricing had reportedly firmed to $365-$375/st FOB in the South Central region, up some $25/st from early May levels, with the low in Memphis and the upper end quoted in the Little Rock, Ark., market.
Southeast: Granular urea pricing in the Southeast was up, with most sources quoting the market firmly at the $370/st FOB level out of port terminals last week. That price reflected a $10/st increase from last report, and some sources said they expected the spot market to move up to the $375/st FOB mark for the next round of business in the region.
India: Things have quieted down as IPL finalized awards from its recent tender, and as people prepare to leave for the IFA World Conference in Istanbul. The increase in prices from China also played havoc with the final take.
Sources now report that IPL will purchase about 775,000 mt. Just as the tender closed, sources expected IPL to take well over 1 million mt. Initial announcements of awards put the tonnage at 820,000 mt, with expectations of more to come.
In the end, however, traders were hard-pressed to secure tons from China at pricing levels that would allow for even a break-even deal. Many backed off from accepting counterbids from IPL.
U.S. Gulf: Recent UAN barge business was put in the $230-$240/st ($7.19-$7.50/unit) FOB range last week for prompt cargoes, but sources agree that most are looking for much lower numbers for June and July. One source said wet weather in some areas is making the situation worse.
The last done business on the East Coast vessel import market was called $235-$240/mt CFR. Sources said buyers had filled up, and while prices could have gone lower, there was no need for material.
Eastern Cornbelt: UAN pricing in the Cincinnati market remained at $260-$265/st ($9.29-$9.46/unit) FOB for UAN-28 and $297-$302/st ($9.28-$9.44/unit) FOB for UAN-32. Other spot quotes last week included UAN-28 at $267/st ($9.54/unit) FOB East Liverpool, Ohio, $275/st ($9.82/unit) FOB Burns Harbor, Ind., and $280/st ($10.00/unit) FOB Toledo, Ohio.
Rail-delivered UAN-32 was pegged at $315-$325/st ($9.84-$10.16/unit) in Illinois.
Western Cornbelt: UAN-32 was reported at $295-$305/st ($9.22-$9.53/unit) FOB in the Western Cornbelt, down $5-$10/st from last report, with the low in southern Missouri and the upper end quoted in the Iowa market. A Nebraska contact pegged the dealer market commonly at the $300/st ($9.38/unit) FOB mark last week.
Southern Plains: UAN-32 was quoted at $270-$290/st ($8.44-$9.06/unit) FOB terminals and regional production points in the Southern Plains, depending on location, with the low confirmed out of Gulf Coast terminals.
South Central: The UAN-32 market was quoted at $285-$295/st ($8.91-$9.22/unit) FOB most terminals in the South Central region.
Southeast: UAN pricing continued to slip in the Southeast, fueled by a weakening import vessel market. UAN-32 was pegged at $250-$255/st ($7.81-$7.97/unit) FOB import terminals in the region, down some $10/st or more from last report, with the low quoted in Savannah, Ga., and the upper end FOB Wilmington, N.C.
U.S. Gulf: After a brief spurt of interest a few weeks ago, sources said prices are again under pressure. The most recent trades were put in the $262-$270/st FOB range.
Western Cornbelt: Ammonium nitrate was reported at $345-$350/st FOB in the Western Cornbelt, down $5/st from last report.
Southern Plains: The Catoosa ammonium nitrate market remained at $345/st FOB.
South Central: Ammonium nitrate was pegged at $335-$345/st FOB in the South Central region, down $5/st from early May levels.
Southeast: The Tampa ammonium nitrate market remained flat at $340-$345/st FOB for truck tons.
Eastern Cornbelt: Granular ammonium sulfate remained at $325-$335/st FOB for the most recent sales in the Eastern Cornbelt, but sources said inventories were tapped out at most locations last week.
Ammonium thiosulfate was steady at $330-$360/st FOB in the region.
Western Cornbelt: Sources continued to report extremely tight ammonium sulfate inventories in the Western Cornbelt. One contact said “a few barges” of import tons were starting to show up, but he noted that product “has been out in the Midwest for a month now.” Limited tons were reportedly available in southern Missouri at the $295/st FOB level out of spot river locations, but most sources put the last sales in the region within a $310-$325/st FOB range.
Ammonium thiosulfate was quoted solidly at the $325/st FOB level in the Western Cornbelt last week.
Southern Plains: The granular ammonium sulfate market remained referenced at $260-$295/st FOB in Texas, depending on location, although sources reported very tight supply and limited availability last week. One contact said imported tons were available on the reseller market in Oklahoma, but no pricing levels were confirmed for those tons last week.
The ammonium thiosulfate market was flat at $295-$305/st FOB in the Southern Plains. Sources said production at Tessenderlo Kerley’s McPherson, Kan., facility has restarted after a refinery turnaround.
South Central: Granular ammonium sulfate was in tight supply in the South Central region, and sources reported much higher spot prices. The dealer market was quoted at $305-$310/st FOB last week, up a full $25-$30/st from last report, with the low at Memphis and the upper end at Little Rock.
Ammonium thiosulfate remained at $310-$325/st FOB in the region.
Southeast: Granular ammonium sulfate had reportedly firmed to $285/st FOB Hopewell, Va., for very limited tons.
Although reference prices for delivered granular ammonium sulfate were unchanged at $270-$295/st in the Southeast, sources said no tons were available at those levels in late May. One contact said he picked up a spot load from a reseller for as high as $315/st DEL last week, which was a better reflection of the current market for any available product in the region.
Central Florida: The spring phosphate season continued to wind down in Central Florida. Prices held firm against what some described as limited selling opportunities, and were mostly called $445/st FOB for DAP.
Truck-loaded product comprised the bulk of reported sales. Some traders offered DAP around $450/st FOB, although no transactions were confirmed at that level.
Difficulty in sourcing phosphate continued to be a problem for some, with producers reportedly preferring to supply more lucrative offshore markets.
Central Florida DAP was quoted at $445/st FOB, unchanged from last report. MAP was also unchanged at $450-$465/st FOB.
U.S. Gulf: Sources reported a quieter NOLA barge market last week, with trading volumes falling from the corn season’s recent peak.
DAP spot prices continued to rise despite the slowdown, and were quoted in a range of $418-$425/st FOB. MAP was quoted at $420-$435/st FOB for confirmed sales. Paper swaps for June and July continued in a range of $420-$425/st FOB, and a number of early third-quarter physical sales were reported in the same range.
Cooling terminal demand sucked the wind out of the upriver barge market, which sources universally declared all but dead for the week. “We haven’t been pinged for anything upriver since last week,” said one contact.
With demand tapering off, the market’s price swell was counterintuitive to some. Though total barge supply was believed to be relatively unchanged from recent weeks, the number of sources offering barges was significantly reduced.
Mosaic’s repurchase of “under a dozen” of its own barges in the previous reporting period swept up small-quantity offerings from a number of traders, sources said, resulting in Mosaic and one other major player holding the majority of the market’s length. While some speculated that those repurchased barges were quickly turned around and offered at the current week’s higher rates, Mosaic said the material was to be included in a sale to India instead.
“We recently bought a dozen or so barges off the Mississippi,” said Mosaic CEO Jim Prokopanko, speaking at the BMO Farm to Market Conference in New York. “Barges were starting to weaken and be a burden on the market. We took those barges and made another vessel sale to India, and we made a margin on the barges we bought.”
Additionally, the NOLA market remains the cheapest phosphate market in the world, observers said, and domestic prices will be forced to rise in order to compete with offshore markets commanding $10-$15/st above current barge rates.
Confirmed DAP transactions were put in the $418-$425/st FOB range, up from $410.50-$418/st FOB the week before. Offers of $430/st FOB were prevalent, although no barges were believed to have traded at that price as of May 21. MAP was called $420-$435/st FOB, an increase from $420/st FOB at last report.
Eastern Cornbelt: DAP was quoted at $460-$470/st FOB in the Eastern Cornbelt, with MAP $5-$15/st higher than DAP, depending on location.
10-34-0 was reportedly unavailable in the region last week due to extremely tight supply.
Western Cornbelt: Sources in all three Western Cornbelt states pegged the DAP market commonly at the $460/st FOB level last week, with MAP quoted at $465-$470/st FOB.
10-34-0 remained in very tight supply in the region. Although some sources said no tons were available and pegged the last confirmed business at $590/st FOB, others said the new pricing level for any available product was firmly at the $640/st FOB mark “if you can find the tons.”
Southern Plains: The DAP market was quoted firmly at the $460/st level FOB Catoosa, w
U.S. Gulf: Price ideas continued to drift downward, with players putting the market within the $324-$330/st FOB range or lower for BPC product.
Eastern Cornbelt: Potash was quoted at $370-$390/st FOB in the Eastern Cornbelt, depending on grade and location.
Western Cornbelt: Potash pricing continued to slip in the Western Cornbelt. Sources quoted the dealer market at $370-$390/st FOB last week, down another $7-$10/st depending on grade and location, with the low reported in Nebraska and the upper end in Iowa.
Southern Plains: Potash pricing had reportedly slipped to $375-$385/st FOB in the Tulsa market, down another $5/st from last report. 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.
The SOP Magnesia market FOB Carlsbad remained at $385-$400/st, depending on grade.
South Central: The potash market had reportedly slipped to $375-$380/st FOB in the South Central region, down $5-$15/st from last report, depending on location, with the low end quoted in the Memphis market last week.
Southeast: Imported potash tons remained at the $380/st FOB level out of most port terminals in the Southeast. Canadian tons were quoted at $400-$407/st rail-DEL in the region, depending on grade.
India: Belarus Potash Co. (BPC), K+S, and ICL have yet to officially announce annual supply contracts with Indian customers, although, as previously reported, BPC is reported to have agreed with Indian Potash Ltd. (IPL) to supply around 600,000 mt of potash during the current fiscal year ending March 31, 2016. The Belarusian producer also is expected to reach new supply contracts with other Indian buyers.
Uralkali, Canpotex, and Arab Potash Co. announced their annual contract signings earlier this month, concluding a $10/mt increase on a CFR basis. Uralkali’s announcement related only to its agreement with IPL. Altogether, concluded contracts are now reported to cover the supply to Indian buyers of a total of at least 3.55 million mt of potash, including optional volumes, during the current fiscal year.
Sources report that RCF received four offers in its tender for 145,000 mt in firm quantities, plus a further 120,000 mt at buyer’s option, which closed May 7. The offers were reportedly made at the new contract price of $332/mt CFR with 180 days. BPC, IPL, and MMTC were heard to be three of the companies offering tons. An award is expected shortly.
Brazil: After a difficult start to the year, higher volumes of potash are now starting to arrive in the country. Sources say prices largely remain at the $330-$340/mt CFR level, with BPC and possibly at least one other supplier reported to have achieved recent sales near the upper end of this range.
Suppliers are said to be targeting $350/mt CFR by the end of the current quarter.
Bangladesh: The Bangladesh Agriculture Development Corp. signed a US$44 million potash deal with the Canadian Commercial Corporation. The government-to-government arrangement includes an option for an additional US$22 million worth of material. The product will be delivered this fall and will come from Canpotex members.
The two government agencies signed the agreement May 13, but did not release its details until May 21.
Tampa: The second-quarter price of molten sulfur delivered to Tampa was $132/lt.
Refinery utilization rose last week, according to the U.S. Energy Information Administration. Domestic capacity was rated at 92.4 percent for the week ending May 15, a 1.2 percent increase from the previous week’s 91.2 percent, and also higher than last year’s 88.7 percent and the five-year average of 88.6 percent.
Daily crude inputs rose as well, coming in at 16.213 million barrels/d, up 245,000 barrels from the previous week’s average of 15.968 million barrels/d.
U.S. Gulf: The Gulf prill market continued to be quoted in a range of $125-$135/mt FOB, with average transaction levels pinned at around $130/mt FOB.
Vancouver: Market players quoted the Vancouver spot market at $128-$138/mt FOB, an increase from the previous week’s range of $125-$135/mt FOB. Contract prices were quoted in the same range.
Netbacks to Alberta sulfur producers were unchanged at (-)$10-$85/mt FOB.
West Coast: Formed sulfur sold from the West Coast was unchanged at $125-$130/mt FOB, sources said.
Second-quarter molten contracts fell in a range of $90-$130/lt FOB.
ADNOC: Abu Dhabi sulfur was offered at $140/mt FOB Ruwais for the month of May.
Aramco: Saudi Aramco announced a June sulfur price of $142/mt FOB Jubail, a $2/mt increase from the May price of $140/mt FOB.
Tasweeq: May sulfur was listed at $139/mt FOB Ras Laffen.
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.
