Hong Kong — Sinofert Holdings Ltd. reported a 35.53 percent drop in first-half profits attributable to shareholders, to RMB352 million on revenues of RMB20.58 billion, compared to the year-ago RMB545.7 million and RMB22.5 billion, respectively. However, total sales volumes were up 1.06 percent, to 9.14 million mt. Sinofert said in the first half the growth rate for fertilizer demand was slowing down while fertilizer production capacity was rapidly increasing, which made it worse for the existing oversupplied fertilizer industry. It said as the largest fertilizer producer and consumer in the world, China suffered from the continuous oversupply of fertilizers, except potash. For the second half, Sinofert said the world economy is faced with large uncertainties, the oversupply situation will intensify, and major changes are brewing for the fertilizer industry. It said China’s economy will experience a relatively tough period.
U.S. Gulf: Barges continued to be called $350-$360/st FOB. There were reports that a partial vessel-load of Israeli product would be available in early September.
Eastern Cornbelt: The potash market remained at $390-$400/st FOB regional warehouses, with rail-delivered potash referenced at the $410/st level in the Eastern Cornbelt.
Western Cornbelt: Potash continued to be reported in the $390-$400/st FOB range out of regional warehouses, with delivered tons quoted in the $395-$410/st range in the Western Cornbelt.
California: Potash pricing had slipped to $500-$510/st FOB and $510-$520/st DEL in California.
SOP was pegged at $660-$670/st FOB in California, down $10-$20/st from last report.
The dealer market for crystalline potassium nitrate was unchanged at $950/st FOB for bulk and $1,020/st FOB for bags.
Pacific Northwest: Potash pricing was quoted at $470-$480/st FOB and $480-$490/st rail-DEL in the Pacific Northwest, down roughly $20/st from last report.
Effective Aug. 9, Intrepid Potash lowered its muriate of potash postings at Moab and Wendover, Utah, with 60 percent standard moving to $415/st FOB and 60 percent granular to $420/st FOB.
The K-Mag market was unchanged at $461-$470/st FOB in the region.
Western Canada: The regional potash market in Western Canada was pegged at $460/mt FOB Saskatchewan mines to Canadian customers, with pricing out of warehouse locations reported in the $468-$491/mt FOB range, depending on location and supplier.
Central Florida: The eastern U.S. remained drought free last week, and the widespread rainstorms probably had a lot to do with that.
Dealers continued to put buying phosphate and other fertilizers on the back burner last week, and that was likely to continue until the fall season kicks into gear – sometime in late September or early October.
Railcar sales out of Central Florida were done on the basis of contracts only, and no new prompt spot sales were found.
The Central Florida market price range last week continued unchanged at $425-$435/st FOB. Large customers get the best prices. Although no new spot sales were found, sources indicated prices were becoming softer and may decline, as they have on the river system. PCS Sales was selling at market prices out of Aurora and White Springs. A source said the recent DAP price from Aurora, N.C., was $485/st FOB. MAP continued to bring a premium of $20/st FOB over DAP at Central Florida.
U.S. Gulf: As rain has tapered off in the Midwest, water levels on the Mississippi River have begun to follow the same course – falling. The problem was most noticeable on the lower portion of the river.
A source said that if that trend continues, docks along the river will have to shut down, which would create the same kind of problems that happened earlier this year, before the heavy rains began.
Last week, northern Texas, Oklahoma, Kansas, parts of Arkansas, and eastern Louisiana got precipitation that helped ease the drought conditions there. However, the rest of Texas, northern Louisiana, and southern Arkansas went without, which worsened the drought in those areas.
Meanwhile, some areas, such as southern South Dakota and northern Nebraska, got some rains, but eastern Iowa, eastern Illinois, western Indiana, northern Michigan, Minnesota, and parts of Wisconsin have been experiencing problems and have not gotten the rain they needed, although slightly cooler weather was easing the blow.
While the USDA was still predicting record crop yields, an early frost or lack of rainfall could cut into the harvest. That would push up crop prices.
On the futures market, crop prices were mixed. Corn for September rose from $4.815/bushel the previous week to $4.875/bushel last week. For December 2013, corn was $4.645/bushel, a decrease from the $4.7225/bushel for the previous reporting period. Corn for December 2014 was posted at $4.9975/bushel, less in comparison to $5.0875/bushel the previous week.
Soybean prices for November 2013 were $12.8675/bushel, higher than the $12.655 bushel a week earlier. Beans for November 2014 were posted at $11.84/bushel, lower than the $11.905/bushel a week earlier. Wheat for September 2013 was $6.9425/bushel, lower than the week-ago $7.03/bushel, while wheat for July 2014 was listed at $6.9475/bushel, a decrease in comparison to $7.0625/bushel the previous week. The wheat price for July 2015 was posted at $7.045/bushel, down from $7.155/bushel at the last report.
Although the number of NOLA phosphate barges on the river system remained very low last week, prices continued to fall. Sources said part of the problem was the bear market for potash and urea, as well as the generally held belief that prices will go down. That was despite the fact the fall season was just around the corner and a last minute rush will push prices higher, and do so fairly quickly. The bear export market was also a likely factor for lower prices on the river system.
"They (dealers) would rather get caught in an up market than a down market," one trader said. "They would rather make less (if the market goes up) than lose more (if the market goes down.)"
Paper prices for NOLA DAP barges were in the $370s/st FOB late last week for deliveries in September and October. A couple of sources said they exp
Eastern Cornbelt: Granular ammonium sulfate remained at $270-$285/st FOB and $280-$290/st DEL in the Eastern Cornbelt. Ammonium thiosulfate was steady as well at $350-$360/st FOB for the last business.
Western Cornbelt: Granular ammonium sulfate pricing in the Western Cornbelt remained in the $270-$300/st FOB range, depending on location.
Ammonium thiosulfate was quoted at $310-$325/st FOB last week, with the low in Nebraska and the upper end in Iowa and Missouri.
California: Ammonium sulfate pricing in California had reportedly fallen to $275-$310/st FOB, with the low in Lathrop and the upper end FOB El Centro. IRM’s Tranzform and WesternPremium ammonium sulfate postings dropped on Aug. 16 to $290/st FOB Chico, while WesternStandard ammonium sulfate postings moved on Aug. 7 to $280/st FOB Chico and Woodland.
Ammonium thiosulfate was steady at $310/st FOB Stockton for truck tons.
Pacific Northwest: Sources reported lower prices for ammonium sulfate in the Pacific Northwest. IRM’s postings for Tranzform and WesternPremium ammonium sulfate had reportedly fallen to $290/st FOB and $300/st DEL in Washington, Oregon, Idaho, and Montana, with WesternStandard referenced at $250/st FOB and $260/st DEL.
Ammonium thiosulfate was unchanged at $330-$340/st FOB Washington terminals.
Western Canada: Granular ammonium sulfate pricing was unchanged at $380-$385/mt DEL in Western Canada.
U.S. Gulf: Most said AN barges continue to be soft and were called $300/st FOB, with no interest. Sources speculated that it would take $290-$295/st FOB to attract any movement.
Western Cornbelt: Ammonium nitrate was unchanged at $390-$400/st FOB in the Western Cornbelt for the last tons sold.
California: The AN-20 market remained at $295/st FOB and $310/st DEL in California. No current prices were reported for ammonium nitrate in the state.
CAN-17 was steady at $335-$358/st FOB in California, depending on location and supplier.
Pacific Northwest: No market was reported for ammonium nitrate in the Pacific Northwest.
U.S. Gulf: Most players last week saw UAN as weaker, though it was hard to hang your hat on actual trades. Most felt UAN should be following urea downward. CF was reported to be readying another export, which would indicate a soft domestic market; however, at the same time, sources said recent imports into the East Coast at $266-$267/mt CFR would equate to a firm NOLA market in the high $240s/st FOB.
Eastern Cornbelt: UAN-32 was unchanged at $285-$300/st ($8.91-$9.38/unit) FOB in the Eastern Cornbelt, depending on location, with UAN-28 quoted at $256.20-$262.50/st ($9.15-$9.38/unit) FOB terminals in Ohio and Indiana.
Western Cornbelt: UAN-32 pricing in the Western Cornbelt was steady at $285-$295/st ($8.91-$9.22/unit) FOB for the last sales.
California: The UAN-32 market had reportedly fallen to $335-$365/st ($10.47-$11.41/unit) FOB in California, down $5-$10/st from last report, with the lower numbers FOB Stockton and Sacramento and the upper end of the range reported in El Centro.
Agrium’s Aug. 1 UAN-32 postings included $335/st ($10.47/unit) FOB Sacramento and $365/st ($11.41/unit) truck-DEL in California.
Pacific Northwest: The UAN-32 market in the Pacific Northwest was steady at $345-$355/st ($10.78-$11.09/unit) rail-DEL on the low end, with truck-delivered tons quoted at $355-$365/st ($11.09-$11.41/unit) in the region.
Western Canada: UAN-28 pricing was quoted at $339-$342/mt ($12.11-$12.21/unit) DEL in Manitoba, $342-$345/mt ($12.21-$12.32/unit) DEL in Saskatchewan, and $345-$354/mt ($12.32-$12.64/unit) DEL in Alberta and British Columbia. Those ranges reflected an increase of $12-$15/mt from July pricing levels.
U.S. Gulf: The granular urea market continued to be under pressure early last week, with September product trading as low as $287/st FOB. However, sources said August product that was ready to go was gaining a premium as it was in tight supply. It was called as high as $305/st FOB, and $310/st FOB if it was already moving up the river.
By late in the week, sources were calling September product in the low $300s/st FOB.
Sources said prills remain firm at $330-$335/st FOB, as there is not that much product available.
Eastern Cornbelt: Granular urea pricing remained at $335-$355/st FOB in the Eastern Cornbelt, with the low FOB Cincinnati, Ohio.
Western Cornbelt: The granular urea market continued to be quoted in the $345-$355/st FOB range in the Western Cornbelt.
California: The low end of the granular urea market was quoted at $420/st FOB Stockton, Calif., and $425/st FOB Woodland, Calif., down some $20/st from last report.
Agrium’s granular urea postings in California dropped on Aug. 1 to $440/st FOB West Sacramento; $450/st FOB Richvale and Hanford; $475/st truck-DEL in Central California; $485/st truck-DEL in Northern California; and $510/st truck-DEL in the Desert California counties of Imperial, Orange, Riverside, and San Diego. Those levels are down $15-$20/st from Agrium’s July 1 urea postings in the state, depending on location.
Pacific Northwest: The granular urea market had reportedly slipped to $400-$420/st FOB in the Pacific Northwest, down $10/st from last report. Delivered urea pricing was pegged in the $425-$445/st range in the region, depending on location.
Western Canada: Granular urea pricing in Western Canada had reportedly inched up from earlier summer fill levels, moving in mid-August to $505-$510/mt DEL in Manitoba, $510-$515/mt DEL in Saskatchewan, and $515-$530/mt DEL in Alberta and British Columbia. Those ranges were up some $20-$25/mt from last report.
China: Sources say traders looking to fulfill awards from India are facing aggressive producers. Many traders are reportedly short on tons and are looking to China to fulfill their awards.
Prices for granular remain in the low $300s/mt FOB, with prills in the $290s/mt FOB.
Industry watchers say, however, once the current load of Indian awards is sold and gone, the price out of China is expected to drop like a rock.
Even the anticipated next Indian tender in early September is not expected to stop the price slide.
One trader noted that with some tough bargaining, deals were closed at or near $290/mt FOB for prills. Just a couple of weeks ago, $295/mt FOB was the best price that could be achieved.
The portside warehouses remain full, even as vessels line up.
Indonesia: Pusri is reportedly sitting on about 15,000 mt of prilled urea for export.
Sources say the central selling house held on to prills and granular for the past 4-6 weeks to make sure domestic demand was filled. Now reports are that tons for export are available. The only problem is that the soft global market is discouraging to the seller.
Middle East: The material flowing out is all under contract, except for the Indian awards issued to traders for Iranian product.
The steady sales leave the Arab producers in a comfortable position as the quarter ends.
Material is already booked to head to the U.S. and Australia for the third-quarter applications. Sources say these contact tons have already been taken into consideration by the market. Only aggressive demand from the U.S. or Australia will help move the pricing considerations from this region.
U.S. Gulf/Tampa: It is about time for ammonia business to be concluded for September. While some sources predicted a decision could come any minute, others pointed out that there is still a week to run in August.
Sellers may not be in too much of a hurry to make a deal, however, as Yuzhnyy moved up this week.
September NYMEX natural gas closed Aug. 22 at $3.545/mmBtu, up from Aug. 15’s $3.419/mmBtu.
Eastern Cornbelt: Heat and humidity were reported in parts of the Eastern Cornbelt last week, but summer weather patterns have so far been dominated by cooler-than-normal conditions. Several sources said this has benefited crop quality while slowing crop development in many areas.
USDA’s weekly crop report appeared to bear that out last week. Although corn maturation remained as much as 20 percentage points behind the five-year average in Indiana, USDA continued to rate fully 76 percent of the acreage as good or excellent last week, compared with 82 percent in Ohio and 64 percent in Illinois.
With little buying activity to test the markets, sources reported no changes to spot fertilizer prices in the Eastern Cornbelt.
Anhydrous ammonia pricing remained at $540-$560/st FOB in Illinois, with the top of the regional range quoted at $570/st FOB in Indiana and Ohio on a spot basis.
Western Cornbelt: Cool weather continued to ease drought pressure on crops in Iowa, Nebraska, and northern Missouri, even though drought conditions were expanding in those locations. In parts of southern Missouri, by contrast, recent heavy rains have stressed some crops.
Iowa’s corn was just 24 percent in the dough by Aug. 18, well behind the five-year average of 60 percent. USDA rated 47-48 percent of the corn and soybeans in Iowa as good or excellent last week, compared with 65-72 percent in Nebraska. Missouri’s corn and soybeans were 47-49 percent good or excellent, a drop of 7-8 percentage points from the prior week.
Sources reported minimal changes to the regional fertilizer markets last week, and business was seasonally quiet.
Sources continued to report the anhydrous ammonia market at $510-$525/st FOB in Nebraska, $525-$540/st FOB in Iowa, and up to $550/st FOB in the Missouri market.
California: Anhydrous ammonia remained at $695-$705/st DEL in California. Effective Aug. 1, Agrium’s anhydrous ammonia postings dropped to $695/st truck-DEL in Central California, and $705/st truck-DEL in Northern California. Those prices reflect a $65-$70/st drop from Agrium’s July 1 ammonia postings in the state.
The aqua ammonia market was steady at $186/st FOB in California.
Exceptional crop conditions were reported in California in mid-August, even though seasonal drought continued to fuel wildfires. As of mid-August, numerous wildfires were burning in northern, central, and southern California.
Pacific Northwest: The anhydrous ammonia market remained at $630-$680/st DEL in the Pacific Northwest, depending on location, with the low end for railed tons and the upper numbers for truck-delivered material.
Aqua ammonia was steady as well at $165/st FOB Kennewick and Central Ferry, Wash.
Wildfires continued to plague parts of Idaho, Oregon, Washington, and Montana in mid-August, and red flag warnings were in place in all three states last week due to dry, windy conditions.
The dry weather accelerated the development of small grains in the region, and harvest was well underway for spring wheat and barley crops. Sources reported generally favorable crop conditions in areas not affected by hail damage.
Western Canada: Hot weather spurred rapid crop development in Saskatchewan and Manitoba in mid-August, which was needed in many are
Moscow — Recent stock trades before and after the July 30 announcement that OAO Uralkali was pulling out of Belarusian Potash Co. have raised eyebrows, as the action caused potash stocks worldwide to drop. Uralkali confirmed last week that as of Aug. 20 major shareholder Suleiman Kerimov had increased his stake to 21.75 percent from 17.2 percent. Trades that occurred before the July 30 announcement, when shares dropped 19 percent, have garnered the attention of Russia’s Financial Markets Service. Just four days prior to July 30, Alexander Nesis sold his 5.1 percent stake, and just a few weeks earlier Uralkali conducted a buyback from Zelimkhan Mutsoev. However, according to sources contacted by Bloomberg, both trades were a part of existing plans. As of Aug. 20, other major Uralkali shareholders were put as 7 percent by Filaret Galchev, 4.8 percent by Anatoly Skurov, 12.5 percent by Wadge Holdings, and 53.95 percent as a free float, though this includes shares acquired by Uralkali subsidiaries. Wadge is also beneficially owned by Kerimov, Skurov, and Galchev, and has issued bonds to Chengdong Investment Corp. that are exchangeable into 12.5 percent of Uralkali’s ordinary shares. The bonds were issued in 2012 and are mature in 2014.
Tampa: Not much new in the way of sulfur news last week, but a fire at Motiva’s Port Arthur refinery was believed to require a two-week shutdown of its sulfur unit. A spokesman did not respond to a request for additional information.
The molten sulfur price delivered to Tampa for the third quarter was set at $95/lt.
Vancouver: Prices in China were said to be in the low $90s/mt CFR, but buyers were resisting sulfur rising into the mid-$90s/mt CFR. Meanwhile, spot prices at Vancouver were in the $60-$75/mt FOB range. Exports to the U.S. have decreased, especially from Fort McMurray, but a few other sulfur suppliers have begun blocking on a smaller scale.
West Coast: Prices on the West Coast were in the $63-$78/mt FOB range. The West Coast has been hit by the same factors as Vancouver due to its export orientation.
U.S. Gulf: The price range for prill was $70-$80/mt FOB, due to its export bias. However, a source said less was going to prillers, but that may not continue.
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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.
