Eastern Cornbelt: Granular ammonium sulfate was steady at $280/st FOB and $285-$290/st rail-DEL in the Eastern Cornbelt last week.
The ammonium thiosulfate market remained at $310-$330/st FOB in the region.
Western Cornbelt: Granular ammonium sulfate remained at $265-$280/st FOB in the Western Cornbelt, with the low in Missouri and the upper end reported in Iowa.
Ammonium thiosulfate was steady at $310-$325/st FOB in the region.
Southern Plains: Granular ammonium sulfate remained at $240-$275/st FOB in the Texas market. The coarse and standard grade ammonium sulfate markets were $10/st and $20/st lower than granular, respectively.
The ammonium thiosulfate market was unchanged at $295-$300/st FOB in the Southern Plains.
South Central: Granular ammonium sulfate remained at $260-$280/st FOB in the South Central region, depending on location.
Ammonium thiosulfate was unchanged as well at a nominal $310-$325/st FOB in the region for the last confirmed business.
Southeast: Granular ammonium sulfate pricing was pegged at $260/st FOB Hopewell Va., and Augusta, Ga., $265/st DEL in the Carolinas, $275/st DEL in Georgia and Alabama, and $295/st DEL in Florida.
Standard grade ammonium sulfate remained at $200/st rail-DEL in Florida.
Washington — The U.S. Surface Transportation Board (STB) ruled in favor of Agrium Inc. Sept. 11, denying a motion by Canadian Pacific Railroad (CPR) to dismiss the complaint. Agrium said the matter was before the STB’s jurisdiction because a portion of the CPR rail system is within the U.S. Agrium filed the complaint in May, alleging that CPR added defense, indemnity, and liability provisions to its tariffs for discharges of toxic inhalation hazards (TIH). Agrium argued it would have to defend and fully indemnify CPR for liability regardless of fault, except in the case of CPR’s “negligence and willful misconduct,” which Agrium said was too ill-defined. STB ordered discovery to proceed immediately, with completion by Dec. 14, 2015. Further proceedings before STB will occur Feb. 12-May 12, 2016. Ammonia is a sore spot for CPR. The company was the railroad in a landmark incident in the fertilizer industry when one of its trains derailed in Minot, N.D., in 2002. One person was killed and hundreds were sent to the hospital when an ammonia tank car ruptured. While CPR settled a class action lawsuit for $7 million in 2007 (GM Oct. 15, 2007), at that time a CPR spokesman said the company settled more than 1,000 individual lawsuits, with 300 remaining.
Railroads are warning Congress that it must act to amend the Rail Safety Improvement Act of 2008 (RSIA) to delay the Dec. 31, 2015, deadline for the implementation of the positive train control (PTC) installation, or risk a significant disruption in the U.S. rail industry, including the movement of anhydrous ammonia.
RSIA was passed in 2008 after a spate of rail accidents. PTC was part of the critical changes needed to reduce transportation accidents and save lives, according to the Federal Railroad Administration (FRA), which said in an August report that it plans to enforce the PTC requirement beginning Jan. 1, 2016. FRA can fine railroads up to $25,000 per day per incident if they operate without PTC.
While many railroads have invested considerable amounts in PTC, a recent report by the U.S. Government Accountability Office (GAO) said most will not meet the deadline.
Union Pacific Corp. President and CEO Lance Fritz in a Sept. 9 letter to Sen. John Thune, chairman of the Senate Committee on Commerce, Science, and Transportation, that UP would not be able to meet to the Dec. 31 deadline. As a result, Fritz said UP plans to embargo all toxic by inhalation (TIH) traffic, including anhydrous ammonia and chlorine. He said TIH traffic would be embargoed well before the Jan. 1, 2016, deadline, with embargo notices going out prior to Thanksgiving.
Fritz said chlorine and ammonia are two of the largest TIH commodities UP carries. “The suspension of anhydrous ammonia shipments will mean farmers will be unable to get the fertilizer they need to ensure healthy crops,” he said. Fritz added that UP is in the process of notifying its customers, and within the next month it will be letting them know the exact date they will have to start embargoing TIH to clear the network by the end of the year.
Fritz told Thune that rail is the safest way to transport hazardous chemicals. “Overall, 99.997 percent of all hazardous material shipments by rail reach their destination without release caused by train accident. However, if services cease, TIH traffic will be forced to move by trucks on our nation’s highways. Union Pacific carries 27,000 carloads of TIH traffic a year. If this commodity were to still move in commerce, it would need to be carried by about 100,000 trucks.”
UP also said that it planned to stop passenger traffic, with all commuter operations ceasing before midnight Dec. 31, 2015, and long distance trains stopping several days earlier to ensure that all passengers arrive to their destinations before the deadline. UP noted that this will force those who use commuter trains onto the highways, creating an even more congested urban environment.
Although at last report the U.S. Senate had approved a transportation bill that would extend the deadline by three years, the House of Representatives has not approved it.
Atlantic: Tropical Storm Ida formed over the Central Atlantic last week, and was located midway between Africa and the Northeastern Caribbean on Sept. 24. Models predict Ida will take a northerly track while keeping to the waters of the Central Atlantic.
A storm system positioned near Mexico’s Yucatan peninsula was given a 20 percent chance of tropical development by the National Hurricane Center. Forecasts called for the system to make landfall somewhere between the Florida Panhandle and Northern Mexico around Sept. 29-30.
U.S. Gulf: Algiers Lock delays were reported at 4-6 hours for the week due to detouring traffic from the shuttered Bayou Sorrel Lock. Shippers continued to facilitate transit through the heavily congested lock by staging a number of barges in the West Canal, as well as positioning boats throughout the region to assist with locking.
Bayou Sorrel Lock remains shut for dewatering, maintenance, and repairs. The Corps revised the lock’s reopening date to Nov. 15, though work was originally projected to wrap up on Oct. 15. Industrial Lock wait times were reported at 4-6 hours for the week on four boats queued, and navigation through Port Allen Lock was delayed by an hour.
Continued low-water readings prolonged a Low Water Safety Advisory in effect for Miles 167-303, with the advisory anticipated to remain in place until the Baton Rouge river gauge rises above the 12-foot mark. Levels at Baton Rouge were pegged at 9.5 feet and holding on Sept. 24, while depths at New Orleans hovered around the 3.3-foot mark.
Revised completion dates for dolphin construction underway on the east side of Calcasieu Lock will extend navigation restrictions through Oct. 16. The constraints include westbound traffic limited to singlewide tows and Monday-through-Friday nighttime-only travel.
Lower Mississippi River: Reduced water levels persisted on the Lower Mississippi last week, contributing to the establishment of a safety zone for Miles 480-490 restricting nighttime navigation. Despite the continued depth issues, shippers reported fewer groundings for the week.
The continued lack of precipitation left the Memphis river gauge at (-)0.59 feet and falling on Sept. 23. Forecasts predicted levels to hit (-)1.1 feet on Sept. 25, and the long-term outlook put the gauge at (-)3.0 feet on Oct. 4 barring additional rainfall.
Weir dike construction and mat-laying activities concluded at Miles 643, 714, and 869 last week, and are scheduled to resume at Mile 418 on Nov. 7-17. Intermittent navigation interruptions are expected.
Dredging at Miles 482-485 began on Sept. 23, leading shippers to warn of sporadic channel closures through Oct. 7.
Upper Mississippi River: Shipping operators reported wait times of 2-4 hours at Lock 27, with four boats in line for locking. Travel times were reported at an hour or less through Lock 20. Dredging operations at Mile 194 concluded on Sept. 22.
Shippers announced final loading dates for barges destined for Upper Mississippi discharge. NOLA-loaded barges bound for destinations between McGregor, Iowa, and Minneapolis, Minn., were advised to load and release by Sept. 28 to avoid possible winter demurrage. Barges headed for locations between Quincy, Ill., and McGregor should leave NOLA by Oct. 5.
Lock 9 is scheduled to close for the navigation season on Dec. 7, followed by Locks 14 and 17 on Dec. 14. Locks 13 and 21 will cease operations for the winter on Jan. 4, 2016.
Illinois River: Swift flows on the Illinois River restricted Lockport lockings to tows of two or less barges. Shippers expected the restrictions to ease on or around Sept 24.
Dive operations closed LaGrange Lock during daytime hours on Sept. 23.
Grain Futures: As of 4:00 p.m. on Sept. 24, corn and wheat futures were higher compared to the week before, but soybeans were down.
December 2015 corn was posted at $3.815/bushel, up from $3.7975/bushel, while corn for March 2016 firmed to $3.9275/bushel from $3.91/bushel the week before. Contracts for December 2016 corn were $4.045/bushel, up from the prior week’s $4.0275/bushel.
Soybean prices for November 2015 were $8.68/bushel, down from $8.845/bushel the week before. January 2016 soybeans slipped to $8.725/bushel from the prior week’s $8.8875/bushel, while November 2016 soybeans were quoted at $8.755/bushel, down from $8.83/bushel at last report.
December 2015 wheat punched in at $4.9725/bushel, up from $4.815/bushel the week before, while July 2016 wheat contracts firmed to $5.12/bushel from the previous week’s $4.975/bushel. Wheat for July 2017 was $5.255/bushel, up from $5.21/bushel the week before.
Eastern Cornbelt: Sources reported another week of excellent harvest weather in the Eastern Cornbelt, with one contact describing conditions as “nearly perfect” for an accelerated push on corn and soybeans.
Illinois’ corn harvest was 13 percent complete by Sept. 20, still trailing the five-year average, but ahead of Indiana’s 8 percent and Ohio’s 3 percent. The soybean harvest was just 3-5 percent complete in the region by that date, only slightly behind the average pace.
USDA assigned good or excellent ratings to 53-54 percent of Illinois’ corn and soybeans last week, compared with 47-49 percent in Indiana and Ohio. One Illinois source reported no reliable yield data yet for his territory, but said growers are likely to “pull in an excellent crop.”
The region’s winter wheat crop was 2-3 percent planted by Sept. 20, with some talking of an expected reduction in wheat acreage this fall.
Western Cornbelt: Torrential overnight rains dropped more than five inches of rain on parts of eastern Nebraska and western Iowa on Sept. 22-23, prompting flash flood warnings and causing widespread power outages. Local reports said up to eight inches fell in some locations near Omaha, Neb., and Council Bluff, Iowa, along with hail and 60 mph wind gusts.
The precipitation caused some harvest delays in the region last week, but crop conditions remained favorable in Iowa and Nebraska overall. USDA reported that just 2-5 percent of the corn crop was in the bin in Iowa and Nebraska by Sept. 20, compared with 27 percent in Missouri. The regional soybean harvest was 1-3 percent complete by that date, while Missouri growers had 20 percent of the rice crop harvested.
USDA assigned good or excellent ratings to fully 73-79 percent of the corn and soybean acreage in Iowa and Nebraska last week, compared with 35-50 percent in Missouri. Good or excellent ratings were also assigned to 50 percent of Missouri’s rice crop and 42 percent of the state’s cotton acreage.
Southern Plains: Although strong storms battered parts of eastern Kansas, northeastern Oklahoma, and western New Mexico over the previous weekend, much of the Southern Plains region enjoyed favorable harvest weather last week. Temperatures in the 80s and 90s were reported across northern Texas at midweek, while central Kansas sources reported spotty showers.
Growers were harvesting corn, soybeans, cotton, and sorghum in the region last week. USDA assigned good or excellent ratings to 74 percent of Colorado’s corn crop, compared with 56-57 percent in Kansas and Texas. The Kansas soybean crop was also rated at 57 percent good or excellent last week, while cotton acreage in those two categories totaled 41 percent of the acreage in Texas and 64 percent in Kansas and Oklahoma.
Tampa: Sources were in general agreement concerning the upcoming fourth-quarter contract for molten sulfur delivered to Tampa. “Down,” one market insider said. “It has to go down.”
“The suspicion among most industry participants is that prices will come down in sympathy with the direction of the international (Chinese) market,” another contact said.
Early speculation centered on a price drop in the $15-$20/lt range, although some cautioned against expecting price ideas to move as sharply as seen in the Chinese spot market, where instability has generally been attributed to currency fluctuations and tax structure changes rather than shifting fundamentals.
Sources were divided on the state of supply available in the domestic system. One side pointed to a recent increase in spot cargoes offered from Gulf Coast refiners as evidence of excess sulfur needing a home, while others cited shrinking refining margins as a motivation for refiners to put their facilities on turnaround.
Molten sulfur delivered to Tampa was priced at $137/lt for the third quarter.
PBF Energy restarted an 82,000 barrels/d refining unit at its Delaware City refinery last week, according to reports. The unit was damaged by an Aug. 21 fire affecting the facility’s catalytic cracking unit, which in turn forced a number of other systems to operate at reduced rates.
Domestic refinery capacity stumbled last week, according to the U.S. Energy Information Administration (EIA). Refiners operated at 90.9 percent of capacity for the week ending Sept. 18, down 2.2 percent from the previous week’s 93.1 percent and also lower than the year-ago 93.4 percent, but up from the five-year average of 90.1 percent.
Average daily crude inputs also fell, the EIA said. The week’s inputs came in at 16.203 million barrels/d, 310,000 barrels/d below the previous week’s 16.513 million barrels/d.
U.S. Gulf: Prices on the Gulf prill market were called $115-$120/mt FOB for the week, lower than the previous week’s $125-$130/mt FOB.
Vancouver: Tumbling price ideas in the Chinese spot market pulled the reins on a number of international markets last week, sources said. Some argued that the Chinese market had bounced from a bottom in the $120s/mt CFR for the week. Bids were reported as low as $120/mt CFR, although no deals were confirmed at that level. A handful of transactions were reported above $130/mt CFR.
Vancouver traders, many of whom were said to have abstained from offering to China until the market showed signs of stabilizing, announced concluded transactions at $115/mt FOB last week, lower than the last reported $125-$130/mt FOB range.
Citing currency exchange fluctuations that benefitted Canadian sellers, sources quoted Alberta recent producer netbacks in a range of $15-$85/mt, up from (-)$5-$85/mt.
West Coast: Sources quoted the West Coast formed sulfur market lower last week, at $110-$115/mt FOB. Offshore prices in the region were called $120-$130/mt FOB.
California molten contracts were quoted at $75-$125/lt FOB for the third quarter.
ExxonMobil has given up on plans to quickly restart its damaged Torrance, Calif., refinery, according to reports, opting instead for a longer-term approach that would likely see the plant return to operation in February 2016.
Reports suggested that Exxon failed to convince California state regulators to greenlight the use of outdated pollution control equipment while repairs are underway. Sources said the temporary equipment would have allowed the refinery to run at an estimated 65-85 percent capacity. Industry observers speculated that the facility is currently operating at less than 20 percent of capacity.
U.S. Gulf: Potash barges continued to be called $290-$295/st FOB, with little interest. In the meantime, reports circulated that the recent Trammo vessel laden with BPC product cleared U.S. Customs and is in NOLA.
Eastern Cornbelt: Potash was quoted at $330-$340/st FOB regional warehouses in the Eastern Cornbelt, down another $5/st from last report.
Western Cornbelt: Potash pricing in the Western Cornbelt had reportedly dipped to as low as $320-$325/st FOB out of some regional warehouses for new orders last week, down another $10/st from the previous week’s low. The upper end of the regional range was reported in the $330-$340/st FOB range last week.
Southern Plains: The warehouse potash market had reportedly slipped to $330-$335/st FOB in the Southern Plains, down another $4-$10/st from last report.
Effective Sept. 8, Intrepid’s potash postings FOB Carlsbad, N.M., dropped $20/st from the company’s July 1 reference prices, moving to $345/st FOB for 60 percent granular and 62 percent standard, and $352/st FOB for 62 percent granular and Super Sol 62™.
The SOP Magnesia market FOB Carlsbad remained at $385-$400/st, depending on grade.
South Central: Sources continued to report pressure on potash prices in the South Central region. The market had reportedly slipped to $330-$335/st FOB regional warehouses, down another $5/st from last report.
Southeast: Potash was quoted at $340-$345/st FOB port warehouses in the Southeast, with rail-delivered tons reported in roughly the same range. Those levels reflected a $10-$15/st drop from summer pricing levels.
Brazil: The fall in the Brazilian real to an all-time low against the U.S. dollar this week has further boosted the prospect of increased soybean plantings in the country this year, despite some dry weather concerns as the planting season gets underway.
The real touched R$4.18 against the dollar on Sept. 23, the lowest level since the real was introduced in 1994. Trade estimates indicate Brazilian soybean plantings could rise at least 3 percent this year, and possibly as much as 5-6 percent.
The fall in value of the Brazilian real is also supporting corn planting. Some trade sources now expect the country’s corn acreage to be at a similar level to last year, while earlier expectations called for a major swing in favor of soybeans.
So far, however, there has been little indication of a significant upturn in demand for potash. De-stocking from warehouses where inventory levels remain high is also curbing demand for freshly imported material.
Still, some suppliers remain optimistic that demand will pick up. Uralkali is reported to be bringing in around 100,000 mt of potash this month, but some of this is expected to go into the supplier’s own storage system. As reported last week, BPC is rumored to have sold 50,000-60,000 mt of granular potash for September shipment, reportedly priced at about the $310/mt CFR level (GM Sept. 21, p. 10).
Buyers’ ideas remain at around the $290/mt CFR level. Some sources say deals have been concluded as low as $300/mt CFR, but this could not be confirmed by press time.
Southeast Asia: Buying interest continues to be extremely weak, with little sign of plantation buyers entering the market.
While prices for standard potash for the region as a whole remain at $300-$320/mt CFR, sources says buyers’ ideas in Malaysia are now as low as $290/mt CFR.
Central Florida: DAP offered on the Central Florida market continued to be listed at $430/st FOB, with MAP called $20/st higher.
Citing plunging NOLA DAP paper swap prices for November and December, some traders speculated that a price drop was likely in the short term.
U.S. Gulf: Prices on the NOLA barge market softened last week ahead of The Fertilizer Institute’s (TFI) World Conference in Boston, with prompt DAP numbers generally falling in a range of $420-$427/st FOB.
Domestic product was responsible for the upper end of the range, with imports coming in at lower levels. Confirmed import MAP barges were reported at $430/st FOB, while domestic product was called up to $435/st FOB. Rumors of DAP and MAP transactions as low as $415/st and $425/st FOB, respectively, went unconfirmed.
In addition to the limited quantities of domestic DAP and MAP, a supply of “beige” PhosAgro MAP was also reportedly offered. A cargo of Moroccan product reported to be evenly split between DAP and MAP was rumored to be unloading on Sept. 24, and an additional cargo of Moroccan material was reportedly due at NOLA shortly.
Mosaic last week announced that it would continue operating at reduced phosphate production levels through the fourth quarter due to projected demand hovering near the low end of previous estimates. The announcement came as no surprise to the market, although some market players questioned the timing.
“It’s something that everyone expected, but I’m surprised we’re hearing it this late,” one trader said. “I think a lot of people are still waiting on their September barges, so maybe (Mosaic) didn’t want to spook them into thinking they weren’t getting their orders.”
The prompt NOLA barge market was quoted in a range of $420-$427/st FOB last week, down from $427-$428/st FOB at last report. Sources put MAP at $430-$435/st FOB, down from the previous week’s $435-$438/st FOB range.
Eastern Cornbelt: DAP pricing had reportedly slipped to $455-$465/st FOB regional warehouses in the Eastern Cornbelt, with the low reported out of spot river locations in the Illinois market last week. MAP was pegged at $465-$475/st FOB in the region, reflecting a $3-$5/st drop from last report.
10-34-0 remained at $530/st FOB in the Eastern Cornbelt.
Agrium’s phosphoric acid postings will firm $10/st on Oct. 1, with rail-DEL SPA and MGA prices moving to $1,040/st of P2O5 in Wisconsin and $1,080/st in Michigan.
Western Cornbelt: DAP pricing had reportedly slipped to $455-$465/st FOB in the Western Cornbelt, down $5/st from last report, with MAP quoted in the $465-$475/st FOB range.
The 10-34-0 market was reported at $525-$535/st FOB for limited tons in the region.
Effective Oct. 1, Agrium’s phosphoric acid postings are slated to firm another $10/st of P2O5 from September pricing levels, moving to $1,040/st for rail-DEL SPA and MGA in Nebraska, Missouri, Iowa, and Minnesota, and $1,055/st rail-DEL in the Dakotas.
Southern Plains: DAP was quoted at $455-$465/st FOB Catoosa to the dealer, down $5/st from last report, with MAP pegged in the $465-$475/st FOB range at the port. One regional contact said he anticipates fall rate cutbacks on dry phosphates in his trade territory. “I think some liquidation is trying to occur” as a result, he said.
The 10-34-0 market was pegged at $515-$530/st FOB in the Southern Plains, up slightly from last report. Sources continued to describe supplies of finished tons and acid as “limited” in the region.
Effective Oct. 1, Agrium’s phosphoric acid postings will firm $10/st of P2O5 from September pricing levels, moving to $1,
Paola, Kan. — Mid-West Fertilizer Inc., an independently owned fertilizer wholesaler and ag retailer headquartered in Paola, Kan., has announced the opening of a new 10,000 square foot Agronomy Sales and Training Center in Chanute, Kan. The facility is equipped with meeting rooms, conference rooms, and the latest technology. “We feel this will give us the ability to bring more information together in one new modern facility,” said Rod Silver, Mid-West owner and president. “The training aspect of the center will be used to focus and solve one of the biggest issues we have, which is finding good personnel for the roles of managers, bookkeepers, sales people, and applicators. We feel by starting a grow-your-own approach to these positions, we can attract, train, and retain these key people to thrive in a challenging retail sector.” Mid-West has been in business since 1980, and currently has 20 retail locations in Kansas, Oklahoma, Missouri, and Arkansas. The company’s retail side consists of agriculture inputs, grain, petroleum, and propane, along with a trucking division specializing in transporting anhydrous ammonia. Mid-West has been named to the CropLife Top 100 Retail Agricultural Supply Companies in the U.S. since 1994, ranking 61st in 2011.
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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.
