U.S. Gulf: The market remained quiet at $255-$260/st FOB.
Western Cornbelt: Ammonium nitrate remained in a broad rang of $305-$340/st FOB in the Western Cornbelt, depending on location and availability.
California: CAN-17 was quoted at $315-$325/st FOB port terminals in California, with inland terminal pricing reported in the $332-$352/st FOB range, depending on location.
AN-20 was unchanged at $310-$320/st DEL in the state.
Pacific Northwest: CAN-17 remained at $300/st FOB Kennewick, Wash., and $325/st rail-DEL in the Pacific Northwest.
AN-20 was unchanged at $260/st FOB Kennewick and $270/st rail-DEL in the region.
Potash Corp. of Saskatchewan Inc. reported second-quarter net income of $417 million ($0.50 per diluted share) on sales of $1.73 billion, down from the year-ago $472 million ($0.56 per share) and $1.89 billion, respectively.
“Our earnings for the quarter hit the midpoint of our guidance range but trailed last year’s total, primarily due to weaker nitrogen prices,” said PotashCorp President and CEO Jochen Tilk. “While we have faced some near-term market headwinds, we are encouraged by the strength of global potash demand, especially in offshore markets. During the first six months of this year, our offshore shipments reached a record total, and we believe these conditions will continue to support further growth of our potash business in the years ahead.”
The company has revised its full-year 2015 earnings guidance to $1.75-$1.95 per share from $1.75-$2.05 per share. It estimates third-quarter EPS at $0.35-$0.45.
PotashCorp noted that its Offshore investments brought in $64 million for the quarter, up from the year-ago $55 million. It has increased expectations for this investment for the year to $190-$200 million from the earlier $180-$200 million due to increased dividends from Israel Chemicals Ltd. in the first half.
While PotashCorp is keeping full-year phosphate/nitrogen combined gross margin guidance at $1.0-1.2 billion, it has raised its full-year expectations for the potash business and narrowed its projected sales volume to 9.3-9.6 million mt from the previous 9.2-9.7 million mt. And due to the decline in certain spot market prices through the second quarter, it has lowered the upper end of its potash gross margin range to $1.5-$1.7 billion from $1.5-$1.8 million.
PotashCorp expects global potash shipments to be about 60 million mt in 2015, with China and India the bright spots and the U.S. and Brazil the laggards, both off about 20 percent so far this year. The company believes both will recover in the second half.
Second-quarter North American potash sales volumes were off 31 percent, to 648,000 mt with an average price of $349/mt compared to the year-ago 943,000 st ($321/mt). Offshore shipments made up the difference at 1.86 million mt ($247/mt), up from the year-ago 1.58 million mt ($229/mt). Total volumes were 2.51 million mt ($273/mt), level with the year-ago 2.52 million mt ($263/mt). Gross margin per mt was $168/mt, up from $161/mt.
Second-quarter potash margins were $417 million on sales of $748 million, up from the year-ago $395 million and $747 million, respectively.
Second-quarter phosphate margins were $72 million on sales of $424 million, up from $48 million and $489 million, respectively. Phosphate volumes were 679,000 mt ($553/mt), down from 849,000 mt ($509/mt). Volumes were down due to the 2014 closure of the Suwanee River plant in Florida. Gross margins per mt were $103/mt, up from $52/mt.
Second-quarter nitrogen margins were down at $222 million on sales of $559 million, compared to the year-ago $304 million and $656 millon. Sales volumes were down slightly, to 1.63 million mt with an average price of $334/mt from the year-ago 1.66 million mt ($393/mt). Gross margin per mt was $133/mt, down from $180/mt.
PotashCorp six-month net income was $787 million ($0.94 per share) on sales of $3.4 billion, down from $812 million ($0.95 per share) and $3.57 billion.
Six-month potash margins were $845 million on sales of $1.49 billion, up from the year-ago $695 million and $1.42 billion, respectively. Six-month potash sales volumes were 4.86 million mt ($278/mt) up from the year-ago 4.84 million mt ($257/mt). North American volumes were down at 1.45 million mt ($349/mt) from the year-ago 1.93 million mt ($307/mt), while Offshore volumes were up at 3.41 million mt ($249/mt) from 2.9 million mt ($223/mt). Gross margin per mt was $175/mt, up from $146/mt.
Atlantic: An area of weak low pressure off the coast of Africa held shippers’ attentions last week. The National Hurricane Center gave the system a 20 percent chance of developing further.
U.S. Gulf: Slowly falling levels in the Gulf shipping region were welcome news last week after cresting on or around July 24, though high-water restrictions remained. The New Orleans gauge read 15.4 feet on July 30, and shippers estimated towing restrictions would remain in place for another 2-3 weeks. Extra delays in barge pickup and drop-off were expected.
Navigation delays of 30-36 hours were reported at Industrial Lock with an average 29 boats queued. Bayou Sorrel Lock wait times were put at 18-20 hours thanks to guidewall repairs slated to last through Aug. 15, and Algiers Lock transit times were called 8-10 hours for the week. Boats traveling through Port Allen Lock reported waits of about an hour.
Bayou Sorrel’s repairs necessitated Monday-through-Thursday lock closures from 7:00 a.m. to 5:00 p.m., with shippers expecting minimum waits of 6-8 hours. Bayou Sorrel will close completely for dewatering, repairs, and maintenance Aug. 15 through Oct. 15, during which all vessels must detour through Algiers Lock instead. Delays will be substantial, shippers said.
Calcasieu Lock dolphin construction continued to force singlewide traffic in the westbound direction. Work at the lock is anticipated to cause intermittent delays until the scheduled wrap-up date of Sept. 15.
Canary Creek dredging efforts are scheduled for July 21 through Aug. 4, after which the dredging crew will switch to the Brazos River for approximately five days to clear shoaling accumulated during recent high-water events.
Shippers expected no waterway closures to result from the work.
High-water at Morgan City showed no sign of abatement last week, and was expected to remain above the 6.0-foot mark through approximately Aug. 3.
Lower Mississippi River: An Extreme High Water Safety Advisory remained active between Miles 303 and 869 on the Lower Mississippi River last week. Restrictions specified a minimum of 280 towing horsepower per barge, with no more than 36 barges allowed per tow. Additionally, tows traveling through Vicksburg and Memphis-area bridges were limited to daylight-only travel and 110 feet of total length.
Sources said levels at Baton Rouge were cresting on July 30 at 38.8 feet. Levels were expected to slowly decline over the next 3-4 weeks, and high-water restrictions will remain in effect during that time. Extra delays in barge pickup and drop-off were projected, and restrictions called for at least 240 horsepower per barge for tows traveling in the southbound direction.
Weir dike and mat-laying activities will trigger sporadic daytime closures at Mile 643 through Oct. 8. Similar delays are expected at Mile 893 on Sept. 5-12, at Mile 714 on Sept. 17-22, and at Mile 418 on Nov. 11-17.
Big Island Bendway weir construction is scheduled to commence during the first week of August and run for 25-30 days. Transit will be unavailable during daylight hours for the length of the work, though the Corps is expected to pass all queued traffic nightly ahead of the next day’s closure.
Upper Mississippi River: Minor-to-moderate stage flooding was reported south of Lock and Dam 25.
Water levels in the St. Louis area were greatly improved last week, with the gauge showing 27.1 feet on July 30, significantly lower than the 32.6 feet recorded on July 23. Shippers expected levels to rise slightly before peaking around July 31, then resume their descent. Tows greater than 600 feet were limited to daylight-only transit through St. Louis Harbor until water levels hit the 25-foot mark, forecast to occur on Aug. 2.
Grain Futures: As of 4 p.m. on July 30, corn, soybean, and wheat futures were all lower compared to the week before.
For September 2015, corn was $3.7175 /bushel, down from $4.0325/bushel in the previous report. The December 2015 price for corn was $3.8225/bushel, lower than $4.1375/bushel the week before, and trading of March 2016 corn contracts checked in at $3.93/bushel, a fall from $4.235/bushel.
The August 2015 soybean price was $9.90/bushel, falling from $10.10/bushel. Soybeans for November 2015 were $9.4925/bushel, down from the previous week’s $9.805/bushel. Beans for January 2016 were posted at $9.5375/bushel, lower than $9.8625/bushel in the last report.
Wheat for September 2015 was $4.9775/bushel, down from the prior period’s $5.215/bushel. December 2015 wheat was $5.0525/bushel, a decrease from $5.2875/bushel, and July 2016 wheat contracts traded at $5.1925/bushel, lower than the $5.405/bushel reported last.
Eastern Cornbelt: The region’s excessive rainfall this summer continued to stress corn and soybean crops last week. Agriculture officials in Illinois announced in late July that they will seek a federal disaster declaration for rain-related crop damage this summer, making farmers eligible for loans and possibly emergency funding.
As of July 26, USDA assigned good or excellent ratings to 49-57 percent of the corn and soybean acres in Illinois, compared with 41-47 percent in Indiana and Ohio. Illinois growers had 95 percent of the winter wheat crop harvested by July 26, while harvest progress in Indiana and Ohio had surged to 91 percent and 81 percent, respectively.
Western Cornbelt: Another powerful storm brought torrential rains to Iowa on July 28, with several locations setting daily rainfall totals.
Des Moines received 2.44 inches on July 28, while some southern locations in the state saw 5 inches of rain in 24 hours. The late-month drenching pushed many locations to record precipitation totals for the month, including 7.17 inches in Des Moines, 7.47 inches in Ankeny, and 9.01 inches in Chariton.
USDA assigned good or excellent ratings to 76-83 percent of the corn and soybeans in Iowa last week, compared with 72-74 percent in Nebraska. Missouri’s crops were struggling due to too much rainfall, however, with just 30-51 percent of the corn and soybean acreage rated as good or excellent last week.
Missouri’s cotton was 34 percent good or excellent as of July 26, while 60 percent of the state’s rice fell in those two categories last week. Missouri’s sorghum crop was just 39 percent good or excellent, compared with 71 percent in Nebraska.
California: Flash flood warnings were issued at midweek for parts of Los Angeles and San Bernardino counties as powerful thunderstorms brought heavy rains to parts of California. The additional moisture came just one week after Hurricane Dolores brought unseasonably heavy rainfall to Southern California.
High heat prevailed in Northern California last week. California’s cotton and rice crops were maturing ahead of normal, with good or excellent ratings assigned to 80 percent of the rice and 90 percent of the cotton as of July 26.
Pacific Northwest: Gusty winds continued to fan a number of wildfires in central Washington, while sweltering temperatures settled over Oregon in the second half of July. Western Montana, by contrast, was experiencing cold, wet weather during the last week of July, with snowfall even reported at higher elevations.
The U.S. drought monitor continued to show severe drought across Washington and northern Idaho, with severe-to-extreme drought conditions covering Oregon and northwestern Montana. Most of Wyoming and eastern Montana were drought-free last we
U.S. Gulf: Excessive length in the Pacific region has recently spilled into the Atlantic, sources said, increasing supply and kneecapping the price of sulfuric acid vessels imported to the Gulf of Mexico.
Prices from European smelters were called in a range of $25-$30/mt FOB. Combined with Gulf shipping rates in the low-to-mid $40s/mt, industry insiders called the current market $70-$75/mt CFR, a decline from $75-$90/mt CFR in the previous report.
Tampa: Most sources called the domestic sulfur market balanced-to-short last week, blaming a shift to sweeter, lower-sulfur feedstock for the thinning supply. “We have seen recent changes in crude slates cause many refineries to be off on projected volumes by up to 40 percent,” one market player said.
The first shipment of solid sulfur for processing at Mosaic’s New Wales, Fla., melter is due in port during the week of Aug. 2, sources said. Pricing and origin information for the cargo were unavailable.
The third-quarter contract price of molten sulfur delivered to Tampa was $137/lt, a $5/lt increase from Q2.
Domestic refinery capacity stumbled last week, according to data from the U.S. Energy Information Administration (EIA). The EIA put utilization at 95.1 percent for the week ending July 24, a 0.4 percent decline from 95.5 percent in the previous report. Despite the dip, the rate was higher than both the year-ago 93.5 percent and the five-year average of 90.1 percent.
The rate extended the summer’s historically high capacity, representing the highest fourth-week July utilization rate since 97.0 percent was recorded on July 23, 2004.
Daily crude inputs softened to an average 16.762 million barrels/d, 108,000 barrels/d lower than the previous week’s 16.870 million barrels/d.
Vancouver: Spot cargoes sold from Vancouver were called in a range of $140-$150/mt FOB, sources said, with unconfirmed transactions mentioned as high as $155/mt FOB. Vancouver contracts continued to be negotiated based on short-term market conditions, sources said, resulting in prices mirroring the spot range.
Traders called the Chinese market firm at $165/mt CFR, though some predicted a softer 30-day outlook based on weakening worldwide commodities markets.
Alberta producer netbacks were unchanged at (-)$10-$85/mt.
U.S. Gulf: Confirmed prices on the U.S. Gulf were unchanged in a range of $135-$145/mt FOB for the week.
West Coast: Sources continued to call West Coast formed sulfur $130-$140/mt FOB.
Third-quarter California molten contracts were $75-$125/lt FOB.
ADNOC: ADNOC prills were listed at $150/mt FOB Ruwais for the month of July. Updated pricing for August was expected soon.
Aramco: The August price of Saudi Aramco sulfur was $152/mt FOB Jubail.
Tasweeq: Middle Eastern sulfur continued to inch higher last week. Tasweeq raised its listed price of formed sulfur for the month of August to $151/mt FOB Ras Laffen, a $2/mt increase from $149/mt FOB in July.
U.S. Gulf: The NOLA granular potash market remained under pressure last week, with more sources predicting that a new deal may soon come below the last done $305/st FOB point.
Eastern Cornbelt: Potash fill remained at $345-$355/st FOB for red and $362/st FOB for white granular tons in the Eastern Cornbelt. Rail-DEL potash fill was quoted at $360-$367/st in the region.
Western Cornbelt: Sources reported the potash fill market at $350-$362/st FOB out of warehouses in the Western Cornbelt, with the low for red and the upper end for white granular tons. Rail-delivered fill tons were steady at $360-$367/st.
California: The California potash market was quoted at $472-$480/st FOB warehouses in California, with rail-delivered potash pegged at $485-$495/st in the state, depending on grade and location.
Crystalline potassium nitrate was unchanged at $950/st FOB for bulk and $1,020/st FOB for bags in the state.
Sulfate of potash (SOP) remained at $722-$735/st FOB in California.
Pacific Northwest: Potash fill remained at $410-$420/st FOB in the Pacific Northwest, depending on grade and location, with rail-delivered tons quoted at $415-$425/st. The potash market FOB Utah mines was steady at $370/st FOB for 60 percent standard and $375/st FOB for 60 percent granular, reflecting Intrepid’s July 1 reference prices at Moab and Wendover.
The sulfate of potash (SOP) market remained at $727-$737/st FOB in the Pacific Northwest, down $10/st from last report. SOP Magnesia was quoted at $481-$505/st FOB in the region.
Western Canada: Potash was quoted at $470-$480/mt FOB inland warehouses in Western Canada, with the Saskatchewan mine price reported at $445-$450/mt FOB to Canadian customers.
Northwestern Europe: Demand for both potassium chloride and potassium sulfate remains seasonally slow. The small amount of granular potassium chloride business being done is heard priced in the €305-€310/mt CIF range.
Belgium: Tessenderlo Group expects to have its new calcium chloride unit on stream at its Ham production site in October. The new plant will process part of the hydrochloric acid from the sulfate plant into calcium chloride. Through providing an outlet for the by-product hydrochloric acid at the site, it will allow Tessenderlo to boost its potassium sulfate production at Ham. However, a spokesperson for the company declined to comment on how much additional potassium sulfate could be produced.
Tessenderlo does not comment on its production capacity, but Green Markets estimates the combined potential production capacity for potassium sulfate at the company’s Ham and Loos sites at 0.9 million mt/year.
Tessenderlo announced last September that it would build the new unit as part of a long-term agreement for the production and marketing of calcium chloride signed with Tetra Chemicals Europe AB (GM Sept. 25, 2014). Tessenderlo owns the unit, and Tetra will market the product.
India: National Fertilizers Ltd. (NFL) has issued a tender for the import of 50,000 mt of pink potash (+/-5 percent) for delivery in the second half of October. The tender closes on Aug. 21 and calls for delivery in two 25,000 mt lots to Kandla or Mundra and to Gangavaram. NFL last month scrapped a tender it had issued in April for the same quantity of potash.
Southeast Asia: The region’s markets remain seasonally quiet. Belarus Potash Company (BPC) reports that despite the devaluation of national currencies in many Southeast Asian countries, it is targeting prices of $335-$350/mt CFR for potash throughout the region. Canpotex earlier this month announced new price
Central Florida:Sources called DAP truck sales steady at $430/st FOB for the week, with new offers priced up to $435/st FOB. MAP was listed $20/st higher at $450/st FOB with no sales reported.
Eastern Cornbelt: DAP was steady at $460-$470/st FOB in the Eastern Cornbelt, with MAP $10/st higher than DAP.
Sources continued to report the last prompt 10-34-0 business at the $560-$590/st FOB level in the region. Effective Aug. 1, Agrium’s phosphoric acid postings for rail-DEL SPA and MGA firmed to $1,020/ton of P2O5 in Wisconsin, and $1,060/ton of P2O5 in Michigan.
Western Cornbelt: DAP was pegged at $460-$470/st FOB in the Western Cornbelt, with MAP quoted at $470-$480/st FOB to dealers in the region.
10-34-0 remained at $565-$590/st FOB for the last confirmed sales. Effective Aug. 1, Agrium’s phosphoric acid postings for rail-DEL SPA and MGA firmed to $1,020/ton of P2O5 in Nebraska, Missouri, Iowa, and Minnesota, and $1,035/ton in the Dakotas.
California: MAP was down some $20/st from last report after new postings took effect on July 17, with the market now quoted at $555-$560/st FOB or rail-DEL in California.16-20-0 was lower as well at $408-$415/st rail-DEL or FOB in the state, reflecting a $15/st drop from earlier levels. TSP (0-45-0) was $520/st FOB French Camp, reflecting a $5/st drop.
Simplot’s postings for phosphoric acid firmed $0.10/unit on Aug. 1, moving up to $10.10/unit rail-DEL for SPA and MGA in California, with the FOB price for MGA quoted at $10.30/unit at Lathrop and El Centro. Agrium’s postings for rail-DEL SPA and MGA firmed $60/ton of P2O5 on Aug. 1, moving to $1,020/ton in California and Arizona.
As a result of the phos acid increase, the 10-34-0 market in California firmed on Aug. 1 to $469-$474/st FOB, up $4/st from July pricing levels. 11-37-0 pricing was higher as well, moving to $508-$513/st FOB El Centro, up $5/st from last report.
Pacific Northwest: The MAP market was quoted at $550-$555/st FOB in the Pacific Northwest. Rail-DEL MAP remained in a broad range at $535-$555/st in the region, depending on location and supplier, with the upper end reflecting the July 17 list price from Simplot.
16-20-0 pricing was pegged at $415-$420/st rail-DEL in the region, down $17/st from last report following a reposting from Simplot on July 17. The company’s TSP (0-45-0) posing was down as well, falling $15/st on July 17, to $520/st FOB Pocatello, Idaho.
Phos acid postings from Simplot firmed $0.10/unit on Aug. 1, moving to $9.60/unit FOB Pocatello and $10.10/unit rail-DEL for both SPA and MGA in the Pacific Northwest. Agrium’s Aug. 1 reference price is $1,010/ton of P2O5 for rail-DEL SPA and MGA in Idaho, Montana, Nevada, Oregon, Utah, and Washington, up $60/ton from the July posting.
The 10-34-0 market inched up $7/st on Aug. 1, firming to $449-$454/st FOB in the region. 11-37-0 pricing was up as well at $488-$493/st FOB Hedges, Wash.
Western Canada: MAP remained at $740-$760/mt DEL in Western Canada. The 10-34-0 market, however, had reportedly slipped to $630-$680/mt DEL in the region, down roughly $60-$100/mt, depending on location.
U.S. Gulf: Sources described a second slow week on the NOLA barge market. Trading volumes continued to be depressed relative to recent weeks, though some market players called barge supply improved over the previous period.
Producers lifted the top of the market with sales up to $440/st FOB, though prices softened on the low side to around $432/st FOB. Barges for August and September fell in a similar range.
MAP was universally described as tight, though material offered for late August or September was greeted with lackl
Eastern Cornbelt: The granular ammonium sulfate market remained at $275-$285/st FOB in the Eastern Cornbelt, with rail-DEL tons quoted at the $290/st level before discounts.
Ammonium thiosulfate was steady at $335-$360/st FOB in the region.
Western Cornbelt: Granular ammonium sulfate was unchanged at $280-$290/st FOB in the Western Cornbelt.
The ammonium thiosulfate market remained at $325-$345/st FOB in the region.
Southern Plains: Effective Aug. 3, ammonium sulfate postings from American Plant Food Corp. (APF) will drop at the company’s Texas shipping points. New postings for granular ammonium sulfate include $240/st FOB Freeport; $250/st FOB Galena Park; $260/st FOB Millican; $265/st FOB Fort Worth, Mermentau, and Edna; and $270/st FOB Bartlett, Buffalo, Comanche, Nacogdoches, Troup, and Wortham; and $275/st FOB Littlefield and Paris.
APF’s postings for coarse grade will move on Aug. 3 to $230/st FOB Freeport; $240/st FOB Galena Park; $250/st FOB Millican; $255/st FOB Fort Worth; $260/st FOB Bartlett, Comanche, Troup, and Wortham; and $265/st FOB Littlefield and Paris. Standard grade postings twill move on Aug. 3 to $220/st FOB Freeport and $255/st FOB Littlefield, and compacted postings will move to $250/st FOB Galena Park.
California: The ammonium sulfate market was steady at $270-$325/st FOB in California, depending on grade, location, and supplier, with the low for standard grade and the upper end reflecting Simplot’s posting FOB El Centro. Pricing out of Lathrop was quoted in the $285-$290/st FOB range.
Ammonium thiosulfate remained at $275-$300/st FOB in the state.
Pacific Northwest: Sources pegged the granular and/or premium grade ammonium sulfate market at $275-$300/st FOB and $302-$310/st DEL in the Pacific Northwest, reflecting a slight drop from last report. IRM’s WesternStandard ammonium sulfate postings remained at $208/st FOB and $218/st DEL in the Pacific Northwest.
Ammonium thiosulfate was quoted at $310-$325/st FOB in the region, with the low FOB Kennewick. Effective July 14, IRM’s posting for 12-0-0-26 ammonium thiosulfate moved to $325/st FOB Ritzville, Wash.
Western Canada: The granular ammonium sulfate market was quoted at $400-$410/mt DEL in Western Canada, down some $90-$110/mt from spring pricing levels, depending on location.
Sugar Land, Texas — CVR Partners LP reported second-quarter 2015 net income of $27 million ($0.37 per diluted common unit) on net sales of $80.8 million, compared to net income of $17.1 million ($0.23 per unit), on net sales of $77.2 million for the second quarter a year earlier. "The Coffeyville fertilizer facility ran well during the second quarter," said Mark Pytosh, CEO. "On-stream rates for all facility operating units ranged from nearly 97 percent to 100 percent, which were impressive considering we were heading into our next scheduled plant turnaround." CVR said that it has booked sales for almost all of its second half UAN production. Second-quarter UAN sales volumes were 249,800 st with an average plant gate price of $269/st, compared to the year-ago 239,200 st ($283/st). Ammonia sales were 6,300 st ($546/st), up from the year-ago 2,900 st ($521/st). Six-month net income was $56.8 million ($0.78 per unit) on net sales of $173.9 million, compared to the year-ago $38.6 million of net income ($0.53 per unit), on net sales of $157.5 million. Six-month UAN sales volumes were 524,300 st ($265/st), compared to the year-ago 493,900 st ($267/st). Ammonia volumes were 19,100 st ($551/st), up from the year-ago 8,300 st ($493/st).
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.
