St. Paul, Minn. — CHS Inc. has introduced two new liquid starter fertilizers: CHS Aventine™ Complete, available through CHS Service Centers, and XLR-rate™, available nationwide through CHS cooperatives and crop input retailers. Both XLR-rate and CHS Aventine Complete can be used as a soil or foliar application. Their low-salt formulations make both products seed and plant safe, eliminating the risk of injury or yield loss. “XLR-rate liquid starter fertilizer is a high orthophosphate formulation that delivers early green-up in colder, wet soils; promotes root development for a better stand; and strengthens the crop during pre-productive growth stages to overcome disease and adverse growing conditions,” said Michael Johnson, crop nutrients marketing director for CHS. “CHS Aventine Complete contains a broad range of nutrients and unique chelation technology that prevents micronutrients like iron, copper, zinc, and manganese from binding in the soil, which improves seedling health for a good start that’s necessary for maximum yield,” said Mark Biedenfeld, business development manager for CHS.
U.S. Gulf: Recent trades continue to be quoted in the $360-$365/st FOB range.
Western Cornbelt: The ammonium nitrate market was pegged at a solid $395/st FOB in the Western Cornbelt.
California: No market was reported for agricultural-grade ammonium nitrate in California.
CAN-17 was tagged at $315-$338/st FOB in the state, with the low at Stockton and the upper end FOB El Centro. Agrium was referenced at $330/st FOB Helm and Woodland.
AN-20 was steady at $300/st DEL and $290-$295/st FOB in California.
Pacific Northwest: No market was reported for agricultural-grade ammonium nitrate in the Pacific Northwest.
U.S. Gulf: While UAN barges continued to be called $285-$290/st ($8.91-$9.06/unit) FOB, players continued to argue on both sides of the range. Some said expectations are closer to $280/st, while others said $295/st.
East Coast imports were reported to be weaker at $305-$310/mt CFR.
Eastern Cornbelt: The Cincinnati market remained at $285-$290/st ($10.18-$10.36/unit) FOB for UAN-28 and $326-$332/st ($10.19-$10.38/unit) FOB for UAN-32. In the Illinois market, UAN-32 was pegged at $340-$350/st ($10.63-$10.94/unit) FOB.
Western Cornbelt: UAN-32 pricing was up slightly in the Western Cornbelt, with the dealer market quoted at $345-$355/st ($10.78-$11.09/unit) FOB terminals last week.
California: The UAN-32 market was quoted at $335-$340/st ($10.47-$10.63/unit) FOB Stockton, with the upper end of the California range pegged at the $345/st ($10.78/unit) FOB level. Delivered UAN-32 remained in the $360-$365/st ($11.25-$11.41/unit) range in the state.
Pacific Northwest: The UAN-32 market remained at $380-$400/st DEL ($11.88-$12.50/unit) in the Pacific Northwest, depending on location. A Washington source pegged the common dealer market last week at $380/st ($11.88/unit) for rail-DEL tons and $385/st ($12.03/unit) for truck-DEL.
Western Canada: UAN-28 remained at $425-$448/mt ($15.18-$16.00/unit) DEL in Western Canada, with the low in Manitoba and Saskatchewan and the upper end in Alberta and British Columbia. Dealer postings were reported as high as $460/mt ($16.43/unit) FOB on a spot basis.
U.S. Gulf: Prompt barges that were loaded or ready to go continued to be strong last week at $400-$420/st FOB, according to most sources. While most saw a big fall-off for May to $355-$365/st FOB, others argued that April remains pretty firm for now. April was generally put between $388-$410/st FOB.
The last done prills continued to be called $390-$395/st FOB, though some players were indicating $380s/st FOB for the next round of business.
Eastern Cornbelt: Granular urea was steady at $450-$460/st FOB in the Eastern Cornbelt, with the lower numbers reported out of the Cincinnati, Ohio, market.
Western Cornbelt: The granular urea market was steady at $455-$465/st FOB in the Western Cornbelt, depending on location. An Iowa contact pegged the common dealer market at the $460/st FOB level in late March.
California: Granular urea pricing was reported in the $460-$465/st FOB range in California, down some $20/st from last report, with the low reported out of the Stockton market.
Pacific Northwest: Granular urea FOB the Rivergate terminal in Portland, Ore., firmed $10/st on March 26, moving to $490-$495/st FOB. Delivered urea was steady at $525-$545/st in the Pacific Northwest, depending on location.
Western Canada: Sources quoted the granular urea market at $680-$705/mt DEL in Western Canada, up slightly from last report.
Pakistan: Sources report that Saudi Arabia and Pakistan have completed a deal for 100,000 mt of urea for April and May. No price was put on the deal.
This government-to-government arrangement is separate from the 125,000 mt Pakistan is still expected to buy with Islamic Development Bank money. Industry sources say Pakistan will need 200,000-300,000 mt for the upcoming season. The Saudi-Pakistan government deal is a start on building the necessary reserves.
Each week Pakistan’s media report new government estimates of the country’s urea needs. The government has authorized the import of the tonnage under an Islamic Bank loan. The Trading Corporation of Pakistan will carry out the purchase by public tender once the bank and the Pakistan government come to an agreement on the terms.
One trader noted that the biggest problem Pakistan is facing is the number of deals and government-to-government arrangements with Saudi Arabia.
Sabic is in no mood to dramatically lower its price once it knows it has a captured client, said one trader. Pakistan must accept the Saudi price or miss out on loans and grants for fertilizer and other vital purchases.
One trader said it then becomes hard for TCP to argue with another supplier that the price should be lower after accepting the higher Saudi price.
To add difficulties to the government’s efforts to import more urea, the domestic producers have once again begun their campaign to get more natural gas allocated to them in an effort to end imports
A shortage of natural gas in Pakistan has forced the government to cut back on supplies to the urea producers in favor of consumer use.
The producers argue that their urea is cheaper than the imported tons. As a result, they say, the amount of money the government has to spend on subsidies is less. This argument has been used and rejected for a number of years.
Middle East: Arab producers are having a hard time justifying their offers of $340/mt FOB when Thailand is looking at $340/mt CFR and lower. Sources say the Thai bids are not that serious just yet, but they are an indication of where a price follower is seeing the market.
Sales to the U.S. have slowed down, and sources report that demand from Australia is not where it should be at this time. Australian purchases usually allow A
U.S. Gulf/Tampa: Tampa business for April was concluded at $580/mt CFR, up some $120/mt – or 26 percent – from the March level of $460/mt CFR. While sources, citing higher international prices, were expecting a boost, some said the extent of the increase was a surprise. Sources said there were unconfirmed reports of outages in Trinidad that may have weighed in as well.
April NYMEX Henry Hub rolled off the board March 27 at $4.584/mmBtu, up from March 20’s $4.369/mmBtu. May closed March 27 at $4.538/mmBtu.
Eastern Cornbelt: The fieldwork pace was picking up rapidly in parts of the Eastern Cornbelt. As fertilizer demand accelerated, sources were already reporting supply issues due to delays in receiving rail and barge shipments of replacement tons.
Spot fertilizer prices in the Eastern Cornbelt remained firm, particularly for anhydrous ammonia. Sources quoted the regional ammonia market in a broad range at $625-$665/st FOB, depending on location and time of the week, with the higher numbers reported as the week advanced. New sales were confirmed in Illinois on March 27 at the $650/st FOB level on a spot basis, up a full $60/st from the previous week, with supplies described as short.
Western Cornbelt: Temperatures climbed to the 50s and 60s in central Iowa in late March, and sources reported limited field activities starting in the state. In central Missouri, however, temperatures in the mid-70s sparked a heavy fieldwork pace last week. “Things have been nuts around here,” said one source early in the week.
Sources said the pressing issue for fertilizer demand continues to be limited availability and ongoing delays in receiving replacement tons. “From rail to barges, everything is delayed, and in a lot of cases it just will not make it in time,” said one contact. “It is truly a mess.”
Sources quoted a broad range for ammonia in the region, with reports of outages at some locations and firming prices at others. The low end of the regional market remained at $525-$545/st FOB in Nebraska, depending on location, with the upper end reported at a firm $600/st FOB Palmyra, Mo. The market out of Iowa terminals was reported in the $550-$580/st FOB range in late March.
California: The anhydrous ammonia market was unchanged at $630-$635/st DEL in California, though sources said an increase may be in the works in the near term. Aqua ammonia remained at the $172/st FOB level in the state.
Northern California received some much-needed precipitation last week, with reports of nearly an inch of rainfall in the valleys and up to two feet of snow in the Sierra Nevada.
Unfortunately, the moisture will do little to alleviate long-term drought conditions in the state. As of March 24, snowpack in the Sierra was just 24 percent of normal. The U.S. Drought Monitor showed most of California experiencing extreme to exceptional drought at mid-month, with drought conditions on the southern edge of the state rated as moderate to severe.
The Santa Clara Water District announced last week that it would cut its treated drinking water supplies by 20 percent for the rest of the year to at least seven cities. The agency also told farmers, golf courses, and rural residents within that district that no water will be available this year from creeks and public pipelines.
The announcement comes one month after state officials reported that water districts would receive no water this year from the California State Water Project, a series of dams and canals that deliver water through the Sacramento/San Joaquin River Delta to farms and cities from the Bay area south to San Diego. This is the first time in the project’s 54-year history that such drastic cuts have been enforced, state news reports said.
Port Gentil, Gabon — India’s Tata Chemicals Ltd. has opted to pull out of plans to have a 25.1 percent equity stake in a proposed greenfield ammonia and urea project here (GM Sept. 19, 2011, p. 12). Other partners include Olam International Ltd. and the Gabon government. Tata reportedly made the move due to a new focus away from overseas projects, as well as an indication by Olam that it was moving to a minority, instead of majority, stake in the project.
Beijing — Sinofert Holdings Ltd. recorded a loss of RMB125 million in 2013. Sales volumes were off 5 percent, to 16.28 million mt. Sales were off 15.7 percent, to RMB34.72 billion, and gross profit was off 46.2 percent, to RMB1.279 billion. Sinofert blamed overcapacity problems and a sluggish market. Potash sales were RMB7.465 billion, down 23.3 percent. Nitrogen was down 11.83 percent, to RMB12.475 billion, while compound fertilizers were off 11.91 percent, to RMB5.451 billion. Phosphates were off 15.42 percent, to RMB7.936 billion, while feed phosphates were up 15.61 percent, to RMB627 million. For 2014, Sinofert said the market imbalance will remain evident and operating costs are expected to go up due to rising transportation costs.
West Palm Beach, Fla. — BioNitrogen Holdings Corp., which plans to turn biomass into urea, has announced the signing of a term sheet for a $9 million investment supported by the Florida New Markets Capital Investment Program (NMTC). The investment will be to Hendry BN Construction & Fertilizer Services LLC, a newly-formed subsidiary of BioNitrogen. The $9 million allocation will translate into a new cash investment of approximately $1.5 million for BioNitrogen. The cash proceeds will be used for capital equipment, engineering, closing costs, and improvements to the Hendry County site, including feedstock and fertilizer services and related equipment. Hendry BN will operate on approximately 15 acres at the Weekley Industrial Park and provide mulch, feedstock, construction, and fertilizer services to the site, Hendry County, and surrounding areas. The business is expected to provide five full-time jobs over the next year. The investment is expected to close in April. NMTC is a federal community development program designed to stimulate the flow of investment capital in underserved communities. Taxpayers that make qualified equity investments in designated Community Development Entities (CDEs) receive a tax credit that is claimed over a multi-year credit allowance period. Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments and job creation in low-income communities.
West, Texas — Nearly one year after the devastating ammonium nitrate explosion at West Fertilizer Co. that claimed 15 lives and caused extensive property damage in West, Texas, city officials are reportedly mulling the possibility of building another fertilizer facility in or near the town. According to the Waco Tribune, West Mayor Tommy Muska and representatives of an urban planning firm aired the idea at a town hall meeting in West on March 25. Muska said a new fertilizer facility is just one option on the table to bring jobs and economic growth back to West, but he said West Fertilizer was a sizable employer in the city and the loss of the business has been a blow to area farmers, who are now forced to travel to other locations for their farm input needs. “It’s time to at least talk about it and to see what our citizens think about another fertilizer plant,” Muska was quoted as saying. “The fertilizer plant provided a service to this community, which is still predominantly an agricultural community. It’s been almost a year. It’s time to at least put it out there and see what people think.” Muska said any new fertilizer facility would be placed in a different location away from schools and homes, would be subject to strict zoning requirements, and would be state-of-the-art in terms of meeting safety codes. The Waco Tribune reported that West residents were asked in a recent survey what types of industry would be a good fit for West. The newspaper said 75 percent of respondents said tourism and entertainment, 44 percent said agricultural manufacturing and supply, and 44 percent said warehousing/distribution.
Eastern Cornbelt: Granular ammonium sulfate was unchanged at $280-$290/st FOB in the Eastern Cornbelt.
The ammonium thiosulfate market was steady as well at $335-$340/st FOB.
Western Cornbelt: Granular ammonium sulfate was quoted at $270-$280/st FOB in the region, with the low in southern Missouri and the upper end in Iowa. The posted price from DSM for delivered granular ammonium sulfate to the Midwest moved up $20/st on March 24, to $290.75/st DEL.
Ammonium thiosulfate was steady at $310-$355/st FOB in the Western Cornbelt, with the low in Iowa and the upper end in Missouri.
California: Ammonium sulfate remained at $250-$285/st FOB in California, with the low in Lathrop and the upper end FOB El Centro.
Ammonium thiosulfate was unchanged at $300/st FOB Stockton.
Pacific Northwest: Sources continued to quote the granular ammonium sulfate market at $265-$280/st FOB and $275-$285/st DEL in the Pacific Northwest, although reference prices from some suppliers were as high as $330/st FOB and $335/st DEL in the region.
Ammonium thiosulfate was unchanged at $310-$330/st FOB in the Pacific Northwest.
Western Canada: Granular ammonium sulfate pricing was steady at $475-$480/mt DEL in Western Canada.
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.
