All Posts from June 3, 2013

Ammonia

Ammonia, Aqua Ammonia, Asia, Black Sea, California, Eastern Cornbelt, India, Market Watch, Middle East, Pacific N.W., Tampa, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf/Tampa: Tampa business for June was done at $565/mt C&F, down $22/mt from May’s $587/mt.

Sources said they had been expecting a small drop, but not one as big as $22/mt. The lower number could represent buyer resolve in the wake of a struggling DAP market, what with the end of the U.S. domestic season looming and continued resistance by Indian buyers to price increases.

Eastern Cornbelt: Much warmer weather helped growers move quickly on corn and soybean planting, with progress now tracking ahead of average in Indiana and Ohio.

After two weeks of hectic planting activity, growers were able to seed fully 86-89 percent of the regional corn crop by May 26, equaling the five-year average in Illinois and moving ahead of normal in Ohio and Indiana. Soybean planting also jumped 20-30 percentage points from the previous week, with progress as of May 26 rated at 70 percent complete in Ohio, 60 percent in Indiana, and 40 percent in Illinois.

One Ohio source said several weeks of dry weather had left his trade area in need of rain. “Just give us a drink and we’ll be in good shape,” he said last week.

Sources continued to talk of softer pricing for ammonia last week. While dealer reference prices for anhydrous ammonia remained as high as $770/st FOB out of Ohio and Indiana terminals, Illinois sources quoted spot ammonia pricing in the low $700s/st FOB last week.

Western Cornbelt: Wet, stormy weather continued to limit fieldwork in parts of Iowa and Nebraska in late May.

Local reports said flash floods and wind damage were reported in northeastern Iowa last week, while multiple tornadoes were confirmed in south-central Nebraska at midweek, along with hail and nearly two inches of rainfall in some locations.

USDA reported that 96 percent of Nebraska’s corn crop was planted by May 26, compared with 83-85 percent in Missouri and Iowa. Progress in all three states continued to trail the five-year average, though the gap had closed considerably.

Soybean planting in the region, however, continued to trail well behind the average pace, with progress as of May 26 rated at 63 percent complete in Nebraska, 40 percent in Iowa, and just 30 percent in Missouri. Missouri’s cotton and rice growers were faring better, however, with planting progress estimated at 93-97 percent complete for those two crops.

With movement now focused on sidedress demand, sources reported little new business to test the ammonia market. Ammonia pricing was steady at $680-$720/st FOB in the region, with the low in Nebraska and the upper end of the range quoted in Missouri. Iowa sources tagged the dealer market commonly at the $700/st FOB mark last week.

California: Dry, windy weather in Southern California continued to raise concerns about wildfires. A fire near Santa Barbara was mostly contained by midweek after threatening homes in Los Padres National Forest on Memorial Day.

The dry weather has been a boon for spring crop planting in the state, however. The California cotton crop was 98 percent planted by May 26, while rice acres in the state had progressed to 95 percent planted by that date. Both crops were tracking slightly ahead of the five-year average.

Anhydrous ammonia was unchanged at $765-$770/st DEL in California, with aqua ammonia referenced at the $205/st FOB level.

Pacific Northwest: Wet weather was reported throughout much of the Pacific Northwest last week. One Washington source said his trade area received 3.5 inches during the last week of May alone.

The moisture was needed after a drier-than-normal winter. Some Montana sources said growers were already irrigating newly planted potatoes and spring grains before the late-May precipitation.

Spring plantin

CSB continues study of West explosion damage; arrested paramedic to undergo psych evaluation

Featured, News

The U.S. Chemical Safety Board (CSB) said last week that it was reducing the size of its investigative team at the site of the April 17 West Fertilizer explosion in West, Texas. CSB said the reduction in onsite CSB personnel is typical at this stage of an investigation because the blast remains have “limited or no evidentiary value” after weeks of excavation by other agencies.

CSB had earlier criticized the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Texas State Fire Marshal’s Office (SFMO) for restricting access to and improperly excavating the site, and for preventing other agencies from conducting interviews and examining collected evidence in the weeks following the blast (GM May 27, p. 1).

ATF and the SFMO responded by saying their investigation “takes priority over all other investigations” because the fire and explosion remain “an active criminal investigation.” Although ATF and SFMO were unable to determine what caused the fire that ignited the devastating explosion, the agencies said an intentionally set fire was one of three potential causes that could not be ruled out (GM May 20, p. 1).

Bryce Reed, the 31-year-old former West paramedic who was arrested on May 9 for possessing bomb-making components (GM May 13, p. 1), was ordered by a judge on May 21 to undergo a mental health evaluation at a federal prison medical facility. Reed remains in the McLellan County Jail until the federal Bureau of Prisons arranges his transfer to a facility for psychiatric review.

To date, Reed has not been linked to the West Fertilizer fire and explosion, and is charged only with possession of an unregistered firearm.

CSB’s onsite team continues to survey blast damage using cameras and survey equipment mounted on remote-controlled aircraft. Last week CSB investigators worked with blast experts, structural engineers, and local officials to survey the West Intermediate School, which sustained particularly heavy damage. CSB said it plans to conduct a vulnerability analysis of the building “to understand the potential impact of this explosion had it occurred during the daytime when kids and teachers were at the school.”

TFI President Ford West, in a May 21 address at the International Fertilizer Industry Association’s 81st Annual Conference in Chicago, said the West Fertilizer facility was approximately 500 feet from the school, 650 feet from a nursing home that also sustained heavy damage, and just 450 feet from an apartment complex that was completely destroyed by the blast.

A tenth lawsuit was filed on May 22 in state district court against West Fertilizer and its parent company, Adair Grain Co. The suits seek damages for property losses and also for deaths caused by the blast. One of the lawsuits was filed by the widow of a Dallas firefighter who was killed in the blast, and another by the family of a 96-year-old nursing home resident who died of a heart attack while being evacuated from the facility. The explosion injured more than 200 and claimed 15 lives, 12 of them volunteer firemen and first responders.

TFI’s West toured the devastated town in early May at the invitation of the CSB. He told IFA conference-goers that TFI endured a “media hurricane” in the hours and days immediately after the explosion, fielding constant questions from reporters and correcting erroneous information related to the explosion and the industry, including initial reports that West Fertilizer was a manufacturer instead of a retail facility.

The industry has been forced to respond to more incorrect reporting in recent weeks. A May 22 news service story drew particular criticism for reporting that “at least 800,000 people across the U.S.,” as well as “hundreds of schools, 20 hospitals, and 13 churches,” are located near si

Sulfur

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

Tampa: With the world market for sulfur on the decline, several sources said last week that the U.S. market may follow suit. Qatar’s price was reduced to $133/mt FOB, and China has been paying as low as $150/mt CFR for the sulfur it receives.

The market was essentially in balance in the U.S., however, due in part to turnarounds in the Midwest. Refinery operating capacity rates fell 0.9 percent last week, to 86.4 percent from the previous week’s 87.3 percent, according to the U.S. Department of Energy.

The second-quarter molten sulfur price for Tampa was $155/lt FOB.

In other news, Exxon-Mobil was working to repair a leak in a combustor at its Baton Rouge refinery, which was putting as much as 48,000 pounds more of sulfur dioxide into the atmosphere. The Louisiana Department of Environmental Quality said the problem was discovered on May 29, but there was no date for when the repair would be complete.

U.S. Gulf: More product was said to be moving south, with a price range of $140-$150/mt FOB.

Vancouver: There was no change in spot prices at Vancouver, which remained in the $130-$140/mt FOB range.

China has remained Vancouver’s biggest customer, but smaller volumes to customers in Latin America were bringing higher prices.

West Coast: Bakken low-sulfur crude was getting noticed on the West Coast, although the impact so far has not been that great.

Prices on the West Coast were in the $143-$153/mt FOB range.

Benelux: The price range for the second quarter was $175-$185/mt FOB.

ADNOC: The ADNOC price for May was $155/mt FOB.

Potash

California, Eastern Cornbelt, Market Watch, Pacific N.W., Potash Muriate, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf: The barge market continues to be called $410-$415/st FOB.

Eastern Cornbelt: Potash was pegged at $445-$455/st FOB regional warehouses. Sources quoted the Cincinnati potash market at the $450/st FOB level, but “you can buy it for less if you want to push it,” said one contact.

Western Cornbelt: Potash remained at a flat $445-$455/st FOB regional warehouses in the Western Cornbelt.

California: Potash was quoted at $540-$550/st FOB and $550-$560/st DEL in California. Sources reported little demand, with the next big push expected in the fall on nut trees.

SOP remained in tight supply, with the market quoted at $660-$690/st FOB in California, depending on supplier.

The dealer market for crystalline potassium nitrate in California was unchanged at $950/st FOB for bulk and $1,020/st FOB for bags.

Pacific Northwest: Potash remained flat at $500-$510/st FOB regional warehouses. Delivered potash was pegged at $520-$530/st DEL in the region, with the Utah mine price quoted at $435-$440/st after netbacks. Dealers were “working the bottom of bins,” said one source.

K-Mag remained at $481-$491/st FOB for limited tons in the Pacific Northwest.

Western Canada: Potash continued to be quoted in the $489-$505/mt range FOB regional warehouses in Western Canada, depending on grade and location.

The potash market to Canadian customers FOB Saskatchewan mines remained at $474/mt FOB for 60 percent granular potash.

Phosphates

California, Central Florida, China, Eastern Cornbelt, India, Market Watch, Pacific N.W., Phosphate Rock, U.S. Exports, U.S. Gulf, Western Canada, Western Cornbelt

Central Florida: With corn planting nearly finished in much of the country last week, dealers scaled back their orders and were looking mostly for trucks from nearby warehouses in the areas served by Central Florida. The objective was to finish the season with empty bins.

Most dealers continued to believe prices will go down for phosphates and other fertilizer products by the time they need to restock in late August. While prices have gone down this year, export sales should diminish inventories throughout the summer, and the price trend may reverse before fall.

Phosphate producers last week got a break in the price of ammonia. The Tampa price for June moved down $22/mt, to $565/mt C&F from $587/mt, which was a bigger drop than had been anticipated.

The Central Florida price range remained unchanged at $450-$520/st FOB. Large customers were receiving the best prices. Mosaic was listed at $465/st FOB for rail and $480/st FOB for trucks, while CF Industries was posted at $520/st FOB. PCS Sales was selling at market prices out of Aurora and White Springs.

MAP continued to bring a $20/st premium over DAP at Central Florida.

U.S. Gulf: The Mississippi River and many of its tributaries were either at or rapidly approaching flood stage again late last week. The problem was most acute in the areas north of St. Louis, and Iowa appeared the hardest hit by the problem.

News reports said many rivers in Iowa were flooding last week and the Mississippi River was expected to flood in southern Iowa. The state received a record-breaking 16.4 inches of rain from March through May, well above the normal of about 10 inches. A new storm front moved into the state in the middle of last week, and that was expected to aggravate the situation.

The rain was hampering efforts to get crops in the ground. USDA estimated on May 26 that 86 percent of the corn had been planted nationally, compared with 99 percent last year and 90 percent for the five-year average. Soybeans were also behind schedule, with only 44 percent planted nationally by May 26, compared with an average of 61 percent.

Crop prices were mixed last week. Corn for July was lower at $6.5075/bushel last week, compared with $6.615/bushel a week earlier. Corn for December 2013 was $5.585/bushel, up from $5.3325/bushel the week before, while corn for December 2014 was posted at $5.645/bushel, up from $5.505/bushel the previous week.

Soybeans for July were at $14.98/bushel, down from $15.05/bushel a week earlier. Bean prices for November 2013 firmed to $12.8525/bushel from the previous week’s $12.4175/bushel, while soybeans for November 2014 were posted at $12.725/bushel, up from $12.40/bushel a week earlier.

Wheat for July 2013 decreased to $6.9675/bushel from the previous week’s $7.0325/bushel, while wheat for July 2014 moved up to $7.5025/bushel last week, compared with $7.485/bushel the week before. Wheat for July 2015 was listed at $7.745/bushel last week, also up from $7.53/bushel a week earlier.

NOLA phosphate barges were still moving, albeit at a very slow rate. The NOLA DAP barge price range changed from the previous week’s $415-$428/st to $417-$425/st FOB last week. Forward sales were in the range of $425-$428/st FOB.

Export sales were providing the foundation for NOLA DAP barge sales, and that should remain the case throughout much of the summer season.

MAP, which had a lower availability, was in the $440-$450/st FOB NOLA range, with little activity.

Eastern Cornbelt: Sources pegged the low end of the DAP market at $465/st FOB Cincinnati, but most regional terminals were put within the $480-$490/st FOB range last week. The MAP market was quoted at $500-$510/st FOB, with the low at Cincinnati.

10-34-0 was tagged at $525-$550/st FOB in the Eastern Cornbelt region, with the l

Ammonium Sulfate

Ammonium Sulfate, California, Eastern Cornbelt, Market Watch, Pacific N.W., Western Canada, Western Cornbelt

Eastern Cornbelt: Granular ammonium sulfate was quoted at $375-$395/st FOB in the Eastern Cornbelt region, with dealer postings tagged as high as $410/st FOB.

Western Cornbelt: Granular ammonium sulfate was quoted at $355-$365/st FOB in the Western Cornbelt region, reflecting another slight drop from last report.

The ammonium thiosulfate market remained in a broad range at $325-$365/st FOB, depending on location.

California: The ammonium sulfate market remained at $370-$400/st FOB in California, depending on grade, supplier, and location.

The ammonium thiosulfate market was referenced at $300/st FOB Stockton for truck tons.

Pacific Northwest: Granular ammonium sulfate was steady at $365/st FOB and $375/st DEL in the Pacific Northwest. Standard grade was significantly lower at $310/st FOB and $320/st DEL.

Ammonium thiosulfate was referenced at $335-$340/st FOB Washington terminals, with delivered tons pegged in a broad range at $330-$360/st in the region.

Western Canada: Granular ammonium sulfate remained at $475-$495/mt DEL in Western Canada. One source pegged the common dealer market in Saskatchewan at the $485/mt DEL level last week.

Ammonium Nitrate

Ammonium Nitrate, California, Market Watch, Pacific N.W., U.S. Gulf, Western Cornbelt

U.S. Gulf: Very little product was reported to be available on the barge market. Sources continue to report the last done business at $345/st FOB.

Western Cornbelt: Ammonium nitrate was unchanged at $400-$405/st FOB in the Western Cornbelt.

California: The AN-20 market was steady at $295/st FOB and $310/st DEL in California. No current prices were reported for ammonium nitrate in the state.

CAN-17 remained in a broad range at $328-$358/st FOB in California, depending on location and supplier, with the lower numbers in Central California and the higher end of the range in Southern California.

Pacific Northwest: CAN-17 remained at $338/st FOB Kennewick, Wash.

No current prices were reported for ammonium nitrate in the Pacific Northwest.

Nitrogen Solutions

California, Eastern Cornbelt, Market Watch, Pacific N.W., U.S. Gulf, UAN, Western Canada, Western Cornbelt

U.S. Gulf: Barges continued to be called in the $290-$300/st ($9.06-$9.38/unit) FOB range, though barges already in route upriver were a little higher. Speculation continued that near-term pricing would fall.

Eastern Cornbelt: Sources continued to talk of softer pricing for UAN last week. “We’re seeing negative markets in the heat of battle,” said one contact, adding that sidedress demand was starting to pick up. Other sources, noting the late start to spring planting, attributed the softness to typical end-of-season jitters as suppliers struggle to empty bins.

The UAN-28 market has reportedly slipped to $318-$320/st ($11.36-$11.43/unit) FOB Cincinnati, with inland pricing quoted at the $335/st ($11.96/unit) FOB level in Ohio and Indiana. Illinois sources pegged the UAN-32 market in the $365-$375/st ($11.41-$11.72/unit) FOB range last week, down some $15/st from last report.

Western Cornbelt: The UAN market was tagged at $360-$375/st ($11.25-$11.72/unit) FOB in the Western Cornbelt region last week, with most dealer quotes reported in the $365-$375/st ($11.41-$11.72/unit) FOB range.

California: A Central Valley source said growers there have about 25 percent of the spring planting left to do, and most of what remains is “double-crop stuff.” He said movement of UAN and ammonium thiosulfate in sidedress applications on corn silage should be brisk in June.

The UAN-32 market had reportedly slipped to $375-$390/st ($11.72-$12.19/unit) FOB in California, with rail-delivered tons quoted in the $380-$395/st ($11.88-$12.34/unit) range. Those levels were down some $15-$20/st from last report.

Pacific Northwest: Sources said UAN pricing was “all over the board” in the Pacific Northwest last week, but levels were definitely down from last report.

Although dealer postings for UAN-32 remained as high as $440/st ($13.75/unit) DEL in the region, Washington sources reported spot quotes as low as $375-$380/st ($11.72-$11.88/unit) for railed tons from the Midwest last week. Other regional sources put the truck-delivered UAN-32 market at the $410/st ($12.81/unit) level for new sales.

Western Canada: UAN-28 was steady at $459-$462/mt ($16.39-$16.50/unit) DEL in Manitoba, $460-$465/mt ($16.43-$16.61/unit) DEL in Saskatchewan, and $465-$474/mt ($16.61-$16.93/unit) DEL in Alberta.

Urea

Black Sea, California, China, Eastern Cornbelt, India, Market Watch, Middle East, Pacific N.W., Pakistan, U.S. Gulf, Urea, Western Canada, Western Cornbelt

U.S. Gulf: The prompt granular urea barge market continued to have legs last week, with sources reporting trades working their way up as the week progressed.

The range was called $329-$340/st FOB, with most players reporting trades in the $330-$335/st FOB range. Upriver barges were reported in the $340s/st FOB. As with last week, sources said reduced quantities led to higher prices.

Eastern Cornbelt: Granular urea pricing covered a broad range in the Eastern Cornbelt last week. Sources quoted the low end at $390/st FOB Cincinnati, Ohio, and $385/st FOB in the Illinois market on a spot basis, while pricing out of inland locations in Ohio remained as high as $430-$440/st FOB.

Western Cornbelt: Granular urea pricing in the Western Cornbelt continued to be quoted in the $380-$400/st FOB range, with the low out of spot river locations and the upper numbers inland.

Sources pegged the Tulsa, Okla., urea market at $365-$370/st FOB in late May.

California: Urea pricing was down $10-$20/st in California, with sources quoting the dealer market at $460-$470/st FOB in the state. No current delivered numbers were reported last week.

Pacific Northwest: Sources tagged the granular urea market at $470-$490/st FOB in the Pacific Northwest, down $10-$15/st from last report, with rail-delivered tons quoted in the $465-$485/st range. Washington sources pegged the truck-delivered urea market at the $500/st level last week.

Western Canada: Sources quoted the granular urea market at $560-$565/mt FOB and $560-$585/mt DEL in Western Canada, down slightly from last report. Dealer postings for urea remained in the $610-$635/mt DEL range in the region, depending on location.

India: No sooner had most delegates to the annual IFA gathering touched down in their home countries than word filtered out that MMTC called a tender for an unspecified amount of urea. The tender closes Monday, June 3.

The tender rules are all that people expected, with one exception. A few days after the tender was called, MMTC issued an addendum to the call dealing with supplies from Iran. MMTC stated it would be responsible for marine insurance for all orders of material coming from any source except Iran. Suppliers offering Iranian material will have their offers considered only after they show proof they have arranged for all the necessary insurance policies.

Sources say the addendum is a direct result of the economic embargo against Iran imposed by the European Union and the U.S. Insurance companies from those areas are banned from providing coverage to vessels delivering Iranian commodities. A similar insurance issue effectively stopped the flow of ammonia out of Iran last year.

The MMTC tender allows for shipping to take place as late as July 22. The late shipping date makes it likely that Chinese urea will dominate the offers. Sources report that traders are already lining up vessels to get to Chinese ports by the end of June.

Sources say Yuzhnyy tons may also be competitive, but only if the price comes down from current levels in the low $330s/mt FOB.

Asian sources commented that MMTC moved quickly because the off-take of urea from the domestic warehouses is greater than expected. Initially most in the industry expected to see the MMTC tender this week or next, instead of immediately after the IFA meeting. One source noted, however, that in Chicago some of the Indian delegates said they were taking the pulse of the industry and would make a quick decision as to when to call the tender.

Given the generally pessimistic mood about urea during the IFA gathering, sources say it was no surprise to see MMTC move quickly.

Black Sea: Traders are calling the ma

KAP president victim of nitrogen spill

News, News Briefs

Selkirk, Manitoba — Selkirk farmer Doug Chorney, president of the Keystone Agricultural Producers (KAP), a Winnipeg-based farm lobby group that is backing the proposed North Dakota Nitrogen (NPN) plant proposed for Grand Forks, recently had a first-hand lesson in nitrogen exposure. "It was operator error when I went to uncouple the quick coupler and neglected to open the valve," said Chorney, who was fertilizing winter wheat with a 28-0-0 solution. "When I opened the seal the pressure in the line caused a little splash that hit me in the face." Fortunately he was wearing sunglasses, which protected his eyes. "I went into the house, washed my face, arms, and elbows, and then went back to work. It was warm but not really hot, and I felt nothing unusual the next day driving my truck into town to get more fertilizer." However, it wasn’t long until his temperature spiked and he found himself in the emergency room. After a few days of medication and rest he was back on the farm. After telling his ag retailer the story, he was told his sudden illness was likely caused by exposure to liquid nitrogen, which, like other forms of the nutrient, draws moisture from human bodies. He said his doctors came to the same conclusion after talking with people in the industry. “The key message we’d like to get out to producers is first of all avoid getting spilled on, but if you do have an accident, get to water as fast as you can. It’s also very important to shower right away and put on clean clothes. It took me two full days to recover (because) you just don’t rehydrate yourself by having seven glasses of water.” He now carries Gatorade and water with him on his tractor.

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