Brothers, Ore. — It took Oregon State Patrol two days to get traffic running normally on Highway 20E east of here after a tanker truck carrying about 46,000 pounds of liquid urea fertilizer crashed and overturned on April 18. According to state troopers, the commercial truck pulling a tanker trailer loaded with the fertilizer was eastbound early in the evening when it drifted onto the gravel shoulder. After a complete highway closure for about two hours, one lane was opened for traffic when it was determined safe for motorists to travel through the area. The driver, who was later cited for failure to maintain a lane of travel, lost control, and his load eventually rolled at least once before coming to rest along the shoulder. Press reports stated that he was driving for Sherman Brothers, a trucking firm based in Harrisburg, Ore. Tom Kichenmaster with SMAF Environmental, a hazardous materials company in Prineville that handled the cleanup, said 150 gallons or so of the fertilizer load leaked from an opening in the tanker and had to be removed with the soil and hauled to a landfill. He said the main part was pumped into another tanker and hauled away.
Tampa: Phosphate producers and their sulfur suppliers reached an agreement last week on new prices for the second quarter for molten sulfur delivered to Tampa. The new price was up $8/lt higher than for the first quarter, moving from $172/lt to $180/lt. The new price will be retroactive to April 1.
Devco International received a $78.5 million contract to install a sulfur purification system in northern Iraq. The company said it will be able to process 500,000 mt/y, and that could be expanded to 1 million mt/y.
Refinery capacity operating rates increased 0.1 percent last week, from 84.6 percent the previous week to 84.7 percent, according to the U.S. DOE.
No new issues were found last week with either transportation or supply, as supply and demand remained in balance.
The ADNOC sulfur price was posted at $200/mt FOB for the month of April.
U.S. Gulf: Players continued to put recent barge trades in the $480-$490/st FOB range, with others calling them flat-to-weaker.
Eastern Cornbelt: Potash remained at $525-$530/st FOB regional warehouses, with one source quoting rail-delivered white granular potash at the $528/st mark in northern Illinois.
Western Cornbelt: Potash was quoted at $515-$535/st FOB in the Western Cornbelt, with most sources quoting red granular potash at the $525/st FOB mark in late April.
Southern Plains: Potash pricing in the Southern Plains market was reported consistently at the $525/st level FOB regional warehouses last week, with one Kansas source also quoting rail-delivered tons at that mark. The potash market FOB Carlsbad, N.M., was quoted at a nominal $525-$530/st.
South Central: The potash market was flat at $520-$530/st FOB in the South Central region. One source noted that potash usage in his trade area so far this spring is significantly behind average volumes.
Southeast: Potash pricing had reportedly slipped to $545-$555/st rail-DEL in the Southeast, with the upper end quoted for white granular potash in the Carolinas. Out of regional warehouses, red granular potash was also reported at the $545/st FOB level, down $15/st from last report.
Central Florida: Prices for phosphate on the river and on the export market have been rising for the past several weeks, and producers in Central Florida reacted by increasing their prices as well.
Mosaic pushed its price up by $10/st FOB and made new, prompt railcar sales, while CF Industries hiked its list price by $20/st FOB.
However, that was not welcome news for traders who normally buy from Central Florida. “They’ve killed it,” said one “They killed the market (by increasing prices).” Not that long ago, the Central Florida DAP price was far above the NOLA DAP barge price. Late last week, Central Florida’s DAP price was trailing NOLA by as much as $25/st FOB, even after the price hikes.
The alternative for traders was to buy from river terminals, where prices were still more appealing, considering the difference in the cost of transportation.
The Central Florida DAP price range increased last week to $470-$480/st FOB from the previous week’s range of $460-$465/st FOB. CF Industries posted its list price at the $480/st FOB mark, and Mosaic increased its list price to $470/st FOB. MAP continued to sell at a $20/st premium to DAP in Central Florida, about the same difference as from traders, but MAP was virtually unavailable in Central Florida. PCS Sales, which produces MAP at its White Springs facility in North Florida, was selling at prices comparable to the market.
Phosphate producers settled on new prices for second-quarter molten sulfur delivered to Tampa. The price rose $8/lt, from $172/lt to $180/lt. Higher prices on the world market were the driving force in the settlement.
U.S. Gulf: In some areas of the Cornbelt, farmers were still busy preparing fields for spring planting in late April. As a result, those dealers and traders who still need to fill those needs were rushing to get what they could to meet the demand. One source said NPK applications in the area his company services were 97-98 percent complete.
Prices for most NOLA DAP barge transactions were collecting near the top of the previous week’s range, and there were rumors that some sales had gone well beyond that for barges in place. However, no actual trades above the previous week’s range were found, so that could not be verified. If that was the case, they were probably sold on the Ohio River, where prices have been higher. During the previous few weeks, a NOLA DAP barge upriver could bring a premium of $15/st FOB.
What was a little surprising were the prices being commanded for future sales in June through August, which were essentially the same as for prompt barges.
One source said the NOLA phosphate barge market was being pushed not so much by market fundamentals for the river system, but rather by export prices, which have risen by $50/mt or more during the past month. Projections were that the export market will continue to rise for another month or two.
Still, dealers do not want to have anything close to a large supply at the end of the spring season. There are expectations, however, that the fall season will come early this year, just as the spring season did, and that factor may be what is pushing the sale of NOLA phosphate barges for the summer by trading companies.
Most sources said they did not think there were a lot of phosphate barges available on the river, but there were no really good estimations of how many there actually are. Another interesting twist has been the elimination of the differential between DAP and MAP. Early in the season, MAP was bringing as much as $35/st FOB more than DAP. By last week, however, the difference in price had disappeared.
Meanwhile, terminal prices for DAP were escalating to adjust for the higher barge cost. By late last week, most terminal prices were running in the $515-$525/st FOB range, up
Eastern Cornbelt: Ammonium sulfate remained in tight supply at $425-$445/st FOB in the region, but tons were reportedly tough to come by. Delivered granular sulfate from DSM was quoted at the $432.25/st level in the Midwest.
Ammonium thiosulfate was steady at $375-$380/st FOB in the Eastern Cornbelt. Western Cornbelt: Granular ammonium sulfate pricing was steady at $425-$445/st FOB in the region, with the upper end reflecting dealer reference levels. One Missouri contact quoted the dealer market solidly at the $440/st FOB mark in his trade area in late April.
The ammonium thiosulfate market was pegged at $380-$385/st FOB in the Western Cornbelt region.
Southern Plains: Effective April 16, American Plant Food Corp.’s granular ammonium sulfate postings in Texas firmed $10-$15/st from April 2 reference prices and $35/st from March 1 postings, moving to $360/st FOB Freeport, $370/st FOB Galena Park, $385/st FOB Fort Worth, and $395/st FOB Littlefield. Coarse ammonium sulfate postings moved to $345/st FOB Freeport, $355/st FOB Galena Park, $370/st FOB Fort Worth, and $385/st FOB Littlefield, and standard grade postings firmed to $340/st FOB Freeport and $380/st FOB Littlefield. APF’s N-Pac Compacted posting firmed on April 16 to $375/st FOB Galena Park.
Ammonium thiosulfate was pegged at $310-$330/st FOB in the Southern Plains region in late April, with the low out of production points.
South Central: The granular ammonium sulfate market had firmed to $385-$390/st FOB in the South Central region. Effective April 16, APF’s granular ammonium sulfate postings FOB Mermentau, La., firmed $15/st to $390/st. Southeast: Ammonium sulfate prices in the Southeast were up $30/st from last report. DSM was pricing granular ammonium sulfate at $375/st FOB Augusta, Ga., $380/st DEL in Virginia and the Carolinas, $390/st DEL in Georgia and Alabama, and $400/st DEL in Florida. In the Northeast U.S., DSM was offering granular ammonium sulfate at $413.25/st rail-DEL after discounts. DSM’s standard grade ammonium sulfate prices in the Southeast region included $242/st FOB Augusta and $260/st DEL in Florida.
Sources said Honeywell was not taking any new ammonium sulfate orders for the month of April, and offering limited tons for May. One source said he was quoted May granular ammonium sulfate at $360/st FOB Hopewell, Va., but with no guarantee the order could be filled due to limited supply.
U.S. Gulf: Ammonium nitrate barges that were ready to move upriver were hard to find last week, with sources saying they were $410-$420/st FOB. In the meantime, sources said barges that would load within a week or two were as low as $370-$380/st FOB.
Western Cornbelt: Ammonium nitrate remained in very tight supply, with the dealer market pegged at $460-$480/st FOB in the region, where available. Southern Plains: Ammonium nitrate was nearly impossible to find in the Southern Plains region. The Catoosa market was sold out last week, with suppliers saying they would be firmly at the $480/st FOB level at the port if they had tons to sell. South Central: Ammonium nitrate remained in very tight supply in the South Central region, and pricing was up considerably from last report. Sources tagged the regional market at $460-$470/st FOB for any available tons, with the low end of the range reported FOB Memphis for limited tons. Southeast: The last pricing quote for ammonium nitrate out of the Tampa market was reported at the $450/st FOB level, up considerably from last report.
U.S. Gulf: Like urea, UAN barges that were readily available were reported to be garnering a premium last week. As a result, barges were called $385-$400/st ($12.03-$12.50/unit) FOB, with unconfirmed reports as high as $410/st ($12.81/unit) FOB. The most common number heard was a firm $390/st ($12.19/unit) FOB. Eastern Cornbelt: Sources pegged the UAN market in the Eastern Cornbelt at $13.30-$13.75/unit FOB regional terminals, with the low reported in the Ohio market on a spot basis. Sources continued to quote reference prices as high as $400.40/st for UAN-28 ($14.30/unit) and $460/st ($14.38/unit) for UAN-32.
Western Cornbelt: UAN-32 was quoted in a broad range at $430-$460/st ($13.44-$14.38/unit) FOB in the Western Cornbelt, and remained in limited supply. Missouri sources said the pace was picking up for sidedress applications on corn, with one reporting that sidedress demand will be “full bore” in his trade area by the first of May.
Southern Plains: UAN was in very tight supply in the Southern Plains, with plant problems and loading allocations limiting availability. The UAN-32 market had reportedly strengthened to $425-$440/st ($13.28-$13.75/unit) FOB terminals for very limited spot material. “Tons are available,” said one source. “It might take a few phone calls to find product, though.”
South Central: UAN-32 out of South Central terminals was quoted at $435-$460/st ($13.59-$14.38/unit) FOB, with the upper end in Arkansas and the low reported out of Memphis and Louisiana terminals. Sources reported UAN moving briskly for corn sidedressing in Arkansas, Tennessee, and Kentucky last week.
Southeast: UAN activity was in a seasonal lull in the Southeast, but sources said the solutions market was “just on the verge” of heavy sidedress movement in the region. UAN-30 was quoted at $350-$355/st ($11.67-$11.83/unit) FOB port terminals in the region, with UAN-32 pegged in the $385-$390/st ($12.03-$12.19/unit) FOB range out of Georgia terminals. Sources quoted the UAN-32 vessel market on the East Coast at $415/mt CFR for May tons and $400/mt CFR for June.
U.S. Gulf: “Time is money” is the saying, and that was pretty much the way it was on the NOLA granular urea market last week.
Prompt barges that were loaded and ready to go were garnering a significant premium over those that were due to load within the next few weeks. Prices were generally called $715-$740/st FOB, with unconfirmed reports that $750/st FOB was achieved. The most common number heard was $730/st FOB. Sources said the higher end of the range represented barges ready to sail, while the lower end was for those to be loaded.
Prices into May and June saw gradual erosion, though some predicted that these could show more strength as the market gets guidance on further demand, particularly for rice country.
A Yara vessel slated for June has been delayed until July. Another was expected to unload in first half May.
Eastern Cornbelt: The granular urea market was quoted at $750-$775/st FOB regional terminals for prompt pull, with the upper end reported in the Ohio market on a spot basis and the low quoted in the Illinois market. Urea inventories remained very tight in the region. One source said some suppliers were offering forward tons at $690-$705/st for mid-to-late May.
Western Cornbelt: Sources pegged the granular urea market at $740-$760/st FOB regional terminals for available tons, but inventories were described as sparse in the Western Cornbelt. One source quoted the common dealer market in the region solidly at the $750/st FOB mark in late April.
Southern Plains: Urea inventories remained tight out of Southern Plains terminals. The market was pegged at $730-$740/st FOB Catoosa, Okla., for any available tons. Sources described the Catoosa market as tight last week due to brisk demand and some restrictions on commercial barge traffic on the Arkansas River. With limited spot tons available, there were reports that some resellers are hesitant to commit to replacement tons for fear of a price collapse and ending the season with excess inventory.
South Central: Several sources said demand was in a brief lull between the heavy corn planting push and the rice and cotton season. Urea demand for the first application on rice was just starting in southwestern Louisiana, but most other locations were still a week to ten days away from heavy demand.
Urea pricing and availability remained the “center focus” for many dealers, as one source described it last week, and caution was a key part of that focus. “We’re working as close to the vest as we can,” said one source. “It’s just-in-time delivery, and we don’t want any more than we need.”
Out of regional terminals, the granular urea market was quoted at $735-$760/st FOB, with the low reported in Louisiana and the upper end out of the Memphis market. Several Arkansas sources pegged the common dealer price for urea solidly at the $750/st FOB mark last week.
Southeast: Demand for urea had also slowed in the Southeast, with sources citing limited availability and higher prices as the cause. Sources reported a range of urea prices out of regional terminals, including $710/st FOB Norfolk, Va., and $715/st FOB Brunswick, Ga., for limited tons, and $750/st FOB Wilmington, N.C. Urea was unavailable in Savannah, Ga., in late April.
India: STC will close a tender May 4. The tender calls for an unspecified amount of non-Iranian urea. This tender is the first major one to rule out the opportunity of Iranian tons.
Some traders speculate that STC does not want to end up in the same situation following the most recent IPL tender.
Emmsons won the March IPL tender with 500,000 mt of Iranian urea. Since the time the award w
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