All Posts from December 7, 2015

Ammonium Nitrate

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

U.S. Gulf: NOLA barges remained in the $210-$215/st FOB range, with no activity.

Western Cornbelt: Ammonium nitrate was steady at $295-$305/st FOB in the Western Cornbelt.

California: AN-20 was reported at $310/st DEL in California, unchanged from last report.

CAN-17 was pegged at $305-$317/st FOB import terminals in the state, while reference prices at inland locations remained as high as $327-$337/st FOB in early December.

Pacific Northwest: CAN-17 remained at $300/st FOB Kennewick, Wash., and $325/st rail-DEL in the Pacific Northwest.

AN-20 was unchanged as well at $260/st FOB Kennewick and $270/st rail-DEL in the region.

Koch Agronomic, Eco Agro settle litigation

News Briefs

Wichita, Kan., and Sarasota, Fla. — Following mediation, which the parties say was scheduled months ago, Koch Agronomic Services LLC (KAS) and Eco Agro Resources LLC have jointly announced an agreement that settles litigation between the companies. The parties have been engaged in litigation since 2014 concerning claims brought by KAS with respect to one of its patents and counterclaims brought by Eco Agro. The case involved urease inhibitors. The U.S. District Court of the Middle District of North Carolina earlier gave the two until Nov. 12 to mediate their differences; when that was not achieved, the court set a pretrial conference for Dec. 17 (GM Nov. 23, p. 13). Financial and other terms of the agreement are confidential and were not disclosed. Earlier, KAS settled a similar suit against Helena Chemical Corp.

Sulfuric acid settlement to cost Simplot $43 M

News Briefs

Boise, Idaho — The J.R. Simplot Co. must spend an estimated $42 million to install, upgrade, and operate pollution controls at all five of its sulfuric acid plants near Pocatello, Idaho, Rock Springs, Wyo., and Lathrop, Calif., plus pay an $899,000 civil penalty, under a settlement reached with the U.S. EPA and Department of Justice (DOJ). EPA and DOJ alleged that Simplot made modifications at the plants without applying for or obtaining needed Clean Air Act permits and obtaining “best available control technology” limits for sulfur dioxide (SO2), as well as sulfuric acid mist and fine particulates (PM2.5) at one of the sulfuric acid plants in Pocatello, where $15 million will be spent on upgrades. The agreement, announced on Dec. 3, also requires Simplot to fund a $200,000 wood stove replacement project in the San Joaquin Valley in California and implement a plan to monitor SO2 emissions continuously at all five plants. It is estimated the settlement will reduce SO2 emissions from the five plants by more than 50 percent, or about 2,540 tons per year. Denying EPA’s allegations, Simplot stated in a news release that the company agreed to meet lower emission limitations at all its plants rather than proceed with litigation, noting that the company had obtained air quality permits or approvals from state and/or local air quality agencies for the modifications, which EPA said were not enough. The Idaho Department of Environmental Quality and the San Joaquin Valley Unified Air Pollution Control District are parties to the settlement. The consent decree formalizing the settlement was lodged with the U.S. District Court in Idaho and is subject to a 30-day public comment period.

Transportation

U.S. Gulf

Atlantic: The 2015 Atlantic hurricane season ended on Nov. 30.

U.S. Gulf: High-water conditions in the Gulf region caused a number of transit delays for the week, sources said.

Wait times at Bayou Sorrel Lock stretched to an average 4-6 hours for the week, with five boats in line to lock. Shippers said Bayou Sorrel was scheduled to close for four out of every 12 hours in an effort to avoid both high-water restrictions and flood control measures. Additionally, the lock was closed to transit from 8:30 a.m. to 3:30 p.m. on Dec. 2.

Delays at Inner Harbor Navigational Canal Lock were called 9-13 hours for the week. The lock was closed between the hours of 8:30 a.m. and 3:30 p.m., Nov. 30 through Dec. 3, and nine boats were queued for locking on Dec. 2. Passage through Algiers Lock was subject to a 4-6 hour wait, and transit through Port Allen Lock was expected to take an hour or less.

Levels at Baton Rouge jumped to 23.1 feet and rising on Dec. 3, up from 17.5 feet recorded for the week-ago. The New Orleans gauge showed an increase as well, climbing to 7.4 feet from 5.5 feet in the last report.

Operating conditions returned to normal at Calcasieu Lock last week, where shippers believed months-long dolphin construction on the lock’s east side had concluded. Wait times were called 2-3 hours for the week, with five boats waiting to lock.

Painting and maintenance activities on the books through April 30, 2016, at the West Port Arthur Bridge have reduced transit clearance by a minimum of three feet, shippers said.

Elevated flows continued to be reported at both the Colorado and Brazos Lock systems, forcing restrictions. Both locks were limited to one single load or two empty barges per locking. Delays were called approximately eight hours at both locks as of Dec. 3.

Lower Mississippi River: River levels in Memphis continued to swell last week. The Memphis gauge read 17.4 feet on Dec. 3, higher than 14.9 feet in the previous report, and area depths were forecast to hit 19.4 feet on Dec. 4 after reading just 2.7 feet on Nov. 19.

Upper Mississippi River: Water levels rising above the 25-foot mark at St. Louis triggered high-water actions beginning Nov. 29. A safety zone was established at Miles 179-184, and southbound tows longer than 600 feet were limited to daylight-only transit.

Lock 27 transit times were called 2-4 hours, with four boats in line for locking. Wait times at Lock 20 were quoted at an hour or less, and Mel Price Lock delays were 1-2 hours, with two vessels waiting for transit.

The Corps’ annual rock removal project near Thebes, Ill., is expected to be delayed until early January 2016, shippers said, thanks to persistent high water in the region. The Corps has stipulated the Cape Girardeau gauge must show river levels below 15 feet before work can begin. The gauge read 33.2 feet and rising on Dec. 3.

Tows transiting Thebes will be capped at 15 barges during daylight hours while work is underway. Tows will not be restricted during nonworking hours. Construction is slated to continue through mid-February.

The St. Louis gauge read 26.5 feet and holding on Dec. 3, up from 19.1 feet in the last report. The gauge at Dubuque, Iowa, showed 8.4 feet and dropping for the week, lower than 10.5 feet at last check.

The final recommended southbound departure date for vessels leaving McGregor, Iowa, was Nov. 23. Vessels departing from Muscatine, Iowa, had until Nov. 28.

Upper Mississippi Locks will begin closing for the navigation season on Dec. 9, starting with Lock 9. Locks 13, 14, and 17 are scheduled to go offline on Dec. 14, and Lock 21 is due to shut down for the winter on Jan. 4, 2016.

Locks 13-21 are tentatively scheduled to reopen on M

Crops/Weather

California, Eastern Cornbelt, Pacific N.W., Western Canada, Western Cornbelt

Grain Futures: As of 4:00 p.m. on Dec. 3, corn and soybean futures were higher compared to the week before, but wheat was down.

For March 2016, corn was $3.77/bushel, up from $3.7025/bushel in the previous report. The May 2016 price for corn was $3.8275/bushel, and trading of December 2016 corn contracts checked in at $3.995/bushel, a rise from $3.9175/bushel.

The January 2016 soybean price was $8.975/bushel, rising from $8.60/bushel. Soybeans for March 2016 were $9.0025/bushel, up from the previous week’s $8.63/bushel. Soybeans for November 2016 were posted at $9.1675/bushel, higher than $8.795/bushel in the last report.

Wheat for March 2016 was $4.765/bushel. July 2016 wheat was $4.9725/bushel, a decrease from $4.98/bushel, and September 2016 wheat contracts traded at $5.1125/bushel.

Eastern Cornbelt: Wet weather kept fall field activities to a minimum in much of the Eastern Cornbelt last week. Several sources said they thought the fall season was over in their areas, although some said they expect dry spreading activity to resume in their areas as weather and field conditions permitted.

Opinions varied on the success of the fall application season in the region. Some sources reported very heavy volumes in their trade areas, easily surpassing last year’s reduced business caused by rain delays and a narrow weather window. Those sources were in the minority, however, with most describing fall activity this year as only average or below average in their territories.

Western Cornbelt: Winter Storm Delphi brought snow and freezing rain to parts of the Western Cornbelt last week. Snowfall from Nov. 29 to Dec. 1 measured up to 12 inches in Valentine, Neb., and Mosher, S.D., while levels in Hull, Iowa, and Madison, Wisc., reached 9 inches or more by the time the storm subsided.

Delphi also brought freezing rain to parts of Iowa, with a quarter-inch of ice reported early in the week in Carroll and Fort Dodge, Iowa.

California: Strong storms were expected to bring 3-5 inches of rain to some parts of Northern California as the week progressed, with significant snowfall likely in the Sierra. Before the moisture, powerful winds were reported along coastal and inland areas of Northern California.

Officials reported on Dec. 1 that California’s snowpack is double what it was last year at this time, but still remains below normal at just 56 percent of the historical average for water content. “It’s good to see the snow, and hopefully we’ll get more,” said one contact. “There is lots of recharge needed.”

A cold snap in late November brought freezing temperatures to the San Joaquin Valley, but sources reported minimal frost damage to the region’s citrus crops. Local reports said temperatures dropped to as low as 27 degrees in some locations, but didn’t stay cold long enough to do significant damage.

Pacific Northwest: Powerful winds were reported along coastal areas of Oregon and Washington as the week progressed, with reports of 65 mph gusts causing power outages in many areas on Dec. 3.

Rains were expected to follow the wind, with the heaviest precipitation expected on Dec. 5 in western Washington and the coast of Oregon. Snow was likely at higher elevations.

Western Canada: Unseasonably mild temperatures were reported across Manitoba and southern Saskatchewan during the first days of December, with at least 18 high temperatures records set in southern Manitoba on Dec. 3.

By contrast, southern British Columbia experienced heavy rain, damaging winds, and mountain snowfall as the week progressed. Local news reports said some flooding was evident along coast areas of the pr

Sulfur

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

Tampa: Sources continued to describe ample supply in the domestic sulfur market, thanks to ongoing strength in the refining sector.

ExxonMobil Corp. denied rumors of a Nov. 26 explosion at its 238,000 barrel/d Joliet, Ill., refinery, reports indicated. A loud boom heard in the refinery’s vicinity sparked rumors of an explosion on a number of social media platforms, sources said.

The fourth-quarter price of molten sulfur delivered to Tampa was $110/lt.

Refinery utilization rose substantially for the week, according to data released by the U.S. Energy Information Administration (EIA). Domestic refiners operated at 94.5 percent of capacity for the week ending Nov. 27, a 2.5 percent increase from 92.0 percent posted a week earlier.

The current-week rate was higher than both the 93.4 percent on record for the same week of 2014 and the five-year average of 90.1 percent.

Average daily crude inputs grew to 16.803 million barrels/d for the week, a 423,000 barrel/d jump from 16.380 million barrels/d noted for the week-ago.

U.S. Gulf: Sulfur sold from the Gulf Coast was called $115-$120/mt FOB, unmoved from the previous report.

Vancouver: Sources described a slow Vancouver spot market for the week, with prices unchanged at $120/mt FOB. As they have throughout 2015, Vancouver contract prices continued to run even with spot.

Market watchers were divided on the state of the Chinese spot market, however. Some saw the market trending downward, possibly landing in the mid-$130s/mt CFR, while others believed the market had not budged from the last-reported $145/mt CFR.

Netbacks to Alberta producers were quoted at (-)$12-$85/mt FOB, unchanged from recent weeks.

West Coast: West Coast prill was unchanged in a range of $115-$120/mt FOB. Fourth-quarter California molten contracts were $65-$115/lt FOB.

Chevron Corp. reported a fire at its 240,000 barrel/d Richmond, Calif., refinery last week, according to reports. The fire was confined to a non-operating portion of the refinery and was not believed to affect production, sources said.

ADNOC: Abu Dhabi National Oil Co. sulfur was priced at $125/mt FOB Ruwais for November.

Aramco: Prilled sulfur for December loading was $128/mt FOB Jubail, a $13/mt FOB increase from the November price of $115/mt FOB.

Tasweeq: Formed sulfur offered from Qatar firmed last week, Tasweeq announced. Product for December loading was listed at $129/mt FOB Ras Laffan, higher than the $124/mt FOB listed for November.

Mexico: A fire was reported at Mexico’s largest refinery last week, the 330,000 barrel/d Pemex plant located in Salina Cruz, Oaxaca, according to reports. Workers were evacuated during the blaze, and Pemex reported eight people were injured. The refinery continued normal operations following the fire, reports indicated, except for one alkylation unit. It was unknown whether the fire caused the unit to be taken offline.

Potash

Brazil, California, Eastern Cornbelt, India, Northwestern Europe, Pacific N.W., Potash Muriate, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf: Potash barge price ideas were called $250-$255/st FOB, with no activity.

Eastern Cornbelt: The regional potash market was quoted at $295-$310/st FOB in the Eastern Cornbelt, with most river terminals reported in the $300-$305/st FOB range last week.

Western Cornbelt: Potash was unchanged at $295-$310/st FOB regional warehouses in the Western Cornbelt, with the low out of river locations and the upper numbers inland.

California: Sources continued to report movement of potash, gypsum, and sulfur on nut trees in California.

The potash market was unchanged at $464-$470/st FOB warehouses and $475-$485/st DEL in the state, depending on grade and location. “We keep hearing that potash is going to drop sometime soon, but have no idea as to amount, and only on MOP at this time,” said one regional contact.

Sulfate of potash (SOP) was steady as well at $722-$735/st FOB in California.

Crystalline potassium nitrate was pegged at $950/st FOB for bulk and $1,020/st FOB for bags, also unchanged from last report.

Pacific Northwest: Potash was unchanged at $401-$425/st DEL in the Pacific Northwest, with the low for rail and the upper end for truck-DEL tons. The warehouse market was quoted at $405-$420/st FOB, depending on grade and location.

Potash pricing FOB Utah mines remained at $360/st FOB for 60 percent standard and $365/st FOB for 60 percent granular.

The sulfate of potash (SOP) market was steady at $727-$737/st FOB in the Pacific Northwest.

SOP Magnesia pricing remained at $463-$483/st FOB in the region.

Western Canada: Potash was quoted at $470-$480/mt FOB regional warehouses, with the Saskatchewan mine price remaining at $445-$450/mt FOB to Canadian customers.

Brazil: A decrease in some of the potash stocks at warehouses on account of the recent planting season has been a source of some relief to importers. However, with market conditions remaining fundamentally weak, prices have come under further significant pressure this week. There were reports that prices have sunk as low as $265/mt CFR.

BPC said it plans to deliver granular tons to warehouses during December, including volumes for small lot sales.

India: Belarus Potash Co. (BPC) confirmed that it took the award for 3 x 35,000 mt of standard potash under RCF’s Nov. 3 tender. The tons were awarded at the existing contract price of $332/mt CFR with 180 days credit.

The first shipment has already been made, and the second and third shipments are scheduled for the second half of January and March 2016, respectively.

Northwest Europe: Buying interest remains minimal. Granular prices are notionally assessed at €290-€305/mt CIF. One supplier said it continues to ship granular material under long-term contracts priced at around €300/mt CIF until the end of the year.

Phosphates

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

Central Florida: Limited quantities of truck-loaded DAP were sold from the Central Florida Phosphate market last week. The trucks were priced at $405/st FOB, and were bound for destinations located in the Southeast. “That (price) won’t work outside the Southeast,” said one trader.

MAP continued to be listed at a $20/st premium to DAP.

U.S. Gulf: Prices on the NOLA barge market continued to tumble last week. Growing supply from foreign imports targeting NOLA discharge have overwhelmed demand and eroded prices, sources claimed.

Prompt DAP offers were said to begin the week in the $350-$355/st FOB range, but fell to $345/st FOB as of Dec. 2. MAP followed a similar track while maintaining an approximate $5/st premium to DAP.

The reduced offers extended a recent trend of late-week price drops. “Every Wednesday brings sharper offers,” one trader noted.

Some pointed to index pricing attached to the arriving cargoes as driving the barge market lower each week. Others were not convinced, attributing the lower prices to basic market fundamentals instead.

“I’d say the majority of the phosphate weakness is just that we have way too much here,” one trader said. “We’re expecting four Russian vessels, and there are Moroccan and Chinese cargoes rumored.”

Additionally, two vessels loaded with Chinese phosphate were rumored to be located in the Panama Canal on Dec. 3.

The NOLA DAP market was called in a range of $345-$355/st FOB for the week, down from $355-$365/st FOB at last check. MAP was $350-$360/st FOB, lower than $360-$370/st FOB in the previous report.

Eastern Cornbelt: DAP was unchanged at $435-$445/st FOB in the Eastern Cornbelt. MAP was generally $5/st higher than DAP, where available.

The 10-34-0 market remained at $510-$520/st FOB in the Eastern Cornbelt.

Western Cornbelt: DAP was pegged at $435-$445/st FOB in the Western Cornbelt, with MAP $5/st higher than DAP. There were reports of DAP and MAP being offered for as low as $410/st and $415/st FOB, respectively, at the port of Catoosa, Okla., but new prompt sales at those levels were not confirmed last week.

10-34-0 remained at a nominal $525-$540/st FOB in the region.

Agrium’s Dec. 1 phosphoric acid postings remained at November pricing levels of $1,050/st of P2O5 for rail-DEL SPA and MGA in Iowa, Nebraska, Missouri, Colorado, Kansas, Wisconsin, and Minnesota.

California: MAP remained at $545-$555/st FOB or rail-DEL in California. The 16-20-0 market was unchanged as well at $408-$415/st rail-DEL or FOB in the state, with TSP (0-45-0) steady at $525/st FOB French Camp.

Simplot’s December pricing for phosphoric acid remained at $10.50/unit rail-DEL in California for both SPA and MGA, with MGA also referenced at the $10.80/unit level FOB Lathrop. Agrium’s Dec. 1 phos acid postings were unchanged as well at $1,060/st of P2O5 for rail-DEL SPA and MGA in California and Arizona.

10-34-0 was quoted at $484-$489/st FOB in California, with 11-37-0 reported at $525-$530/st FOB.

Pacific Northwest: MAP continued to be quoted in a broad range at $513-$540/st DEL in the Pacific Northwest, although fill programs offered in late November were reportedly no longer on the table. 16-20-0 was pegged at $390/st DEL in the region, with TSP (0-45-0) reported at $520/st FOB Pocatello, Idaho.

Simplot’s December phos acid prices remained at $10.10/unit FOB Pocatello and $10.60/unit rail-DEL for SPA and MGA in the Pacific Northwest. Agrium’s Dec. 1 phos acid prices were unchanged as well at $1,060/st of P2O

Ammonium Sulfate

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

Eastern Cornbelt: Granular ammonium sulfate was unchanged at $275-$285/st FOB in the Eastern Cornbelt, with delivered tons at $285-$295/st. Granular postings from Honeywell included $290/st FOB Byron, Danville, and Granite City, Ill., with mid-grade referenced at $255/st FOB Danville and Granite City.

Ammonium thiosulfate remained at $325-$335/st FOB in the region.

Western Cornbelt: Granular ammonium sulfate remained at $265-$280/st FOB regional terminals in the Western Cornbelt, with the low in Missouri and the upper end quoted in the Iowa market on a spot basis. Postings were reported as high as $290-$300/st FOB in Iowa, although no new sales were confirmed at those levels.

The ammonium thiosulfate market was steady at $295-$325/st FOB in the Western Cornbelt.

California: Ammonium sulfate remained at $270-$325/st FOB in California, depending on grade and location, with the low for standard and the upper end reflecting Simplot’s premium grade posting FOB El Centro. The Lathrop ammonium sulfate market was unchanged at $285-$290/st FOB.

Ammonium thiosulfate was steady at $275-$300/st FOB in the state, with the low quoted for 11-0-0-24 FOB Stockton.

Pacific Northwest: Ammonium sulfate was pegged at $310/st FOB and $320/st DEL in the Pacific Northwest for granular and/or premium grade domestic product. IRM’s postings for standard grade ammonium sulfate firmed on Nov. 18 to $250/st FOB and $260/st DEL in the region, up $12/st from the previous list price.

Ammonium thiosulfate was unchanged at $320-$325/st FOB in the region.

Western Canada: The granular ammonium sulfate market remained at $400-$410/mt DEL in Western Canada.

China: Sources reported no change in the market. Offers are in the $117-$118/mt FOB range, while buyers are holding out for $110/mt FOB. One trader noted that December and January are traditionally slow months for ammonium sulfate exports.

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