All Posts from February 9, 2015

Ammonia

Ammonia, California, Eastern Cornbelt, Market Watch, Southeast, Southern Plains, Tampa, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa: Nothing new was reported in the U.S. Gulf and Tampa markets last week.

March NYMEX natural gas traded Feb. 5 at $2.600/mmBtu, down from Jan. 29’s $2.719/mmBtu.

Eastern Cornbelt: The anhydrous ammonia market was steady at $610-$635/st FOB regional terminals in the Eastern Cornbelt, depending on location and time of delivery, with the low reported for prompt tons in Illinois and the upper end for spring prepay out of Indiana terminals.

Western Cornbelt: The anhydrous ammonia market was quoted at $580-$620/st FOB Western Cornbelt terminals, with the low reported in Nebraska and the high FOB Palmyra, Mo. Iowa sources pegged the common dealer market in the $605-$615/st FOB range last week.

Delivered ammonia in central Missouri was pegged at $615-$620/st from southern production points.

Southern Plains: Sources continued to report limited anhydrous ammonia tons available in the Southern Plains for as low as $530/st FOB regional production points, depending on location. As one source described it, however, that tonnage was available only “if you had a truck willing to wait in line.”

Others pegged the market more consistently at $550-$560/st FOB out of production points, with the Kansas pipeline terminal market remaining at the $570/st FOB mark for prompt tons.

South Central: Anhydrous ammonia pricing in the South Central region was steady at $590-$610/st FOB for prompt tons, with the low FOB Memphis, Tenn., and the upper end FOB Henderson, Ky.

California: Effective Feb. 1, Calamco’s ammonia postings in the California market dropped to $710/st DEL for anhydrous and $193/st FOB for aqua. Those levels reflected a $75/st drop for anhydrous and a $19/st drop for aqua from the company’s Nov. 4, 2014, list prices.

Calamco’s AN-20 price in California dropped as well on Feb. 1, falling to $300/st DEL from the previous $315/st posted level.

Transportation

Market Watch, U.S. Gulf

U.S. Gulf/River: Frigid temperatures contributed to icy conditions at a number of locations on the Illinois River last week. Shippers reported 50 percent ice coverage at Dresden Island Lock, and ice trails on Lake Peoria allowed for one-way traffic only. Due to the conditions, rake barges were preferred for loading on the Illinois. No ice was reported at LaGrange Lock.

The Upper Mississippi River’s Lock 27 main chamber was closed Feb. 3-4, with daytime transit restrictions scheduled for Feb. 6-8 and Feb. 18 through March 7. Demolition of the Old 1270 Bridge at Mile 190.8 began Feb. 3. Sources expected debris cleanup to close the river for at least 24 hours. Officials imposed a 70-foot width restriction at Locks 21 and 22 in response to heavy ice at the sites. No timeline for easing the width restriction was announced.

The U.S. Army Corps of Engineers revised guidelines for the start of the 2014/15 rock removal project at Thebes, Ill. The work is now set to begin when river levels at Cape Girardeau, Mo., descend to 11.5 feet instead of the Corps’ previous 10-foot benchmark. The gauge at Cape Girardeau read 13.0 feet on Feb. 5. Intermittent closures continued at Mile 2.5 during weir construction, slated to wrap up on Feb. 14.

Delays of about an hour were reported at R.C. Byrd Lock on the Ohio River. The main chamber at Greenup Lock was offline on Feb. 4-5, but the lock’s auxiliary chamber was available for use. Repairs at Lock 52 were loosely scheduled for Feb. 8-11 after several wickets were discovered to be missing. The Belleville Lock auxiliary chamber will be closed Feb. 9-27 for repairs, and lock maintenance will force intermittent closures at Newburgh Lock between April 6 and May 19.

Transit through the Monongahela River’s Braddock Lock remained relegated to the site’s land chamber for another week. Use of the river chamber has been curtailed indefinitely due to equipment failure.

Icy conditions hampered operations on the Allegheny River for a third consecutive week, shippers said. Major delays are expected at the Kanawha River’s Winfield Lock from Feb. 25 through April 30 while main chamber repairs are performed.

Repairs to Wilson Lock on the Tennessee River will prompt daytime navigation restrictions on Feb. 23-27, March 16-20, and May 5 through June 11. The lock’s auxiliary chamber will be open for the duration of the work.

Channel maintenance at Lower Mississippi River Mile 634 will force daytime travel restrictions through April 1. In the Gulf, waits were described at Industrial Lock (6-8 hours), Bayou Sorrel Lock (4-6 hours), Port Allen Lock (2-4 hours), and Algiers Lock (one hour). Daytime passage through Calcasieu Lock in the West Canal will be limited through Feb. 28.

Crops/Weather

Eastern Cornbelt, Market Watch, Southeast, Southern Plains, Western Cornbelt

Grain Futures: As of 4 p.m. on Feb. 5, corn, soybean, and wheat futures were all higher compared to the week before.

March 2015 corn was posted at $3.8525/bushel, up from the previous week’s $3.715/bushel, and corn for May 2015 firmed to $3.9325/bushel from the prior week’s $3.80/bushel. Contracts for December 2015 corn were $4.16/bushel, up from $4.0275/bushel the week before.

Soybean prices for March 2015 were $9.8125/bushel, up from $9.6825/bushel the week before. May 2015 soybeans firmed to $9.8775/bushel from the prior week’s $9.7475/bushel, and November 2015 soybeans were quoted at $9.6475/bushel, up from $9.5125/bushel at last report.

March 2015 wheat punched in at $5.2575/bushel, up from $5.0775/bushel the week before, while May 2015 wheat contracts firmed to $5.2725/bushel from the previous week’s $5.125/bushel. Wheat for July 2015 was $5.285/bushel, up from $5.17/bushel the week before.

Eastern Cornbelt: Winter Storm Linus left its mark on the Eastern Cornbelt in early February, dropping heavy snow early in the week and bringing very cold temperatures as the week advanced.

Snowfall on Feb. 1 totaled 16.2 inches in Chicago and 13.7 inches in Detroit. Snow accumulation was also heavy in parts of northern Indiana and northern Ohio, but the central and southern areas of both states escaped with only gusty winds and a light coating of snow and ice.

Cold temperatures descended after the precipitation, however, with lows falling to the single digits at midweek in Chicago, and wind chills there dropping to subzero lows. In central Indiana, wind chills of 2-8 degrees were reported on Feb. 3.

Western Cornbelt: The previous week’s record high temperatures were replaced by a powerful winter storm in early February that dropped heavy snow across much of the Western Cornbelt. The system also ushered in much colder weather.

The storm brought high winds and up to 8 inches of snow to parts of eastern Nebraska on Feb. 1. Snow levels were deeper in Iowa, where totals by Feb. 2 included 10 inches in Des Moines and 14 inches in Johnston. One Iowa source reported a foot of snow in his area, with temperatures falling to subzero lows by midweek.

Missouri was also in the storm’s path, with wet, heavy snowfall reported in central and northern areas of the state, along with high winds that produced drifts up to four feet high. Sources reported single digit temperatures in central Missouri on Feb. 2.

Southern Plains: Snow and ice were reported in eastern Kansas early in the week, with cold temperatures also blanketing much of Oklahoma as the week progressed. Highs in central Oklahoma at midweek fell from the mid-50s to the mid-teens in a matter of hours, and sources said strong winds accompanied the temperature drop.

The arrival of February also brought heavy rains to central Kansas, where sources said growers had been topdressing winter wheat and spreading phosphates and potash in preparation for spring planting. “The wheat looks good, and we are cautiously optimistic,” said one Kansas source.

South Central: Wet, cold weather covered much of the South Central region during the first week of February.

A dusting of snow was reported early in the week in northern and central Tennessee after temperatures fell to the low 30s and upper 20s over the weekend. Light snowfall was also reported in eastern Kentucky by midweek, while freezing rain coated northern Arkansas.

The cold front extended down to southern Mississippi, where news reports on Feb. 5 talked of rainfall and temperatures in the 30s and 40s.

Southeast: A winter weather advisory was issued for western and southwestern North Carolina early

Sulfur

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

Tampa: Members of the United Steelworkers Union (USW) went on strike at nine U.S. refineries last week following a breakdown in contract negotiations.

Eight of the refineries continued operations with replacement managers and workers, but Tesoro Corp’s 166,000 barrel/d refinery in Martinez, Calif., already operating at half capacity due to a planned turnaround, was shut down. The affected refineries represent roughly 10 percent of the nation’s refining capacity.

The USW represents about 30,000 hourly workers at 63 refineries, accounting for approximately two-thirds of U.S. refining capacity. At least five contract offers had been rejected by the USW as of Feb. 5, matching the total number rejected during the most recent round of negotiations in 2012. The last national refinery workers strike occurred in 1980 and lasted for three months. The USW threatened to strike at more refineries should talks fail to progress.

Sources expected the strikes to have little to no effect on refinery operations, citing oil companies’ foresight in training and housing replacement workers.

Domestic refining capacity rose for a second consecutive week, according to the U.S. Energy Information Administration. Utilization for the week ending Jan. 30 stood at 89.9 percent, up 1.9 percent from the prior week’s 8.0 percent, and also higher than last year’s 86.1 percent and the five-year-average of 85.5 percent.

Average daily inputs ticked up to 15.544 million barrels/d, a 288,000 barrel/d increase from the previous week’s 15.256 million barrels/d.
The first-quarter price of molten sulfur delivered to Tampa was $147/lt CFR, and increase of $18/lt from fourth-quarter 2014.

U.S. Gulf: Sulfur sold from the Gulf was called $160-$165/mt FOB, up from the prior week’s $155-$165/mt.

Vancouver: With many anticipating the Chinese spot market to maintain strength throughout the Lunar New Year holiday, most market watchers labeled Vancouver prices in a range of $165-$175/mt FOB.

A byproduct of the offshore market’s extraordinary January volatility, sources speculated that essentially all offshore transactions so far in 2015 have been conducted on a spot basis, with few if any first-quarter contracts concluded.

Sources spoke of persistent issues plaguing Alberta’s massive Syncrude 21 refinery, including a malfunctioning degassing unit. Temporary repairs may allow loading to resume sometime during the week of Feb. 9, though more permanent repairs will eventually be necessary.

The price of Alberta sulfur was quoted at (-)$10-$75/mt.

West Coast: West Coast sulfur was higher for the week at $160-$165/mt FOB, up from $155-$160/mt FOB at last report.

Molten sulfur sold from California was called $90-$130/lt FOB for the first quarter.

Benelux: Benelux sulfur was unchanged at $158-$172/mt for the fourth quarter.

ADNOC: Following upward moves from other Middle East producers, ADNOC increased its February price to $180/mt FOB, a $22/mt jump from January’s $158/mt FOB.

Aramco: The price of Saudi Aramco sulfur was set at $180/mt FOB for February. Aramco is expected to release its March price shortly.

Tasweeq: Qatar sulfur was $182/mt FOB for the month of February.

Potash

Eastern Cornbelt, India, Market Watch, Potash Muriate, Southeast, Southern Plains, Sulfate of Potash Magnesia, U.S. Gulf, Western Cornbelt

U.S. Gulf: While most continued to put the market in the $358-$365/st FOB range, others felt that price could fall a few more dollars with more Belarus imports on the way.

Eastern Cornbelt: Potash was steady at $400-$417/st FOB in the Eastern Cornbelt, depending on grade and location, with the upper end reported for white granular tons.

Western Cornbelt: Potash remained at $400-$417/st FOB in the Western Cornbelt, with the top of the range reflecting reference levels for white granular tons. Sources reported the bulk of pricing quotes for red potash in the $405-$410/st FOB range last week, with reports of $400/st FOB tons available in the St. Louis, Mo., market.

Southern Plains: Potash was quoted at $400-$405/st FOB regional warehouses in the Southern Plains. The Carlsbad, N.M., potash market remained at posted levels of $405/st FOB for 60 percent standard, $410/st FOB for 60 percent granular and 62 percent standard, and $417/st for 62 percent granular.

Sulfate of potash magnesia was unchanged at $375-$390/st FOB Carlsbad, with the low for standard, the upper end for premium grade, and the granular market quoted at $385/st FOB.

South Central: Potash remained at $405-$410/st FOB warehouses in the South Central region.

Southeast: Imported potash tons remained at $395-$396/st FOB in the Wilmington market last week. Canadian tons, where available, were pegged at the $407/st FOB mark in the Southeast, with rail-DEL pricing in the $410-$418/st range in the region.

India: Indian Potash Ltd. (IPL) said last week that Indian potash purchases could jump to 5 million mt for the year beginning April 1, 2015, a 22 percent increase from the prior year’s total.

However, IPL Managing Director P.S. Gahlaut told Bloomberg that farmers cannot afford to pay a higher price due to low commodity prices. To bolster Gahlaut’s claim, the Indian press is filled with stories about an increasing number of farmer suicides, particularly cotton farmers in drought-stricken areas.

The Bloomberg Commodity Index of 22 commodities slid to a 12-year low last month. The 5 million mt would be the highest since 2010/11, according to Bloomberg, citing the Fertilizer Association of India.

Gahlaut said demand has gradually returned to normal levels as prices have stabilized. IPL expects the government to continue with a potash subsidy of 9,300 rupees, or $150 per ton.

Phosphates

Brazil, Central Florida, China, Eastern Cornbelt, Market Watch, Middle East, Phosphate Rock, Southeast, Southern Plains, Sulfuric Acid, Triple Superphosphate, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida: Thin supply from Florida producers pushed prices up last week, sources said. Traders quoted DAP rates in a range of $435-$440/st FOB for railcars, while trucks bound for Alabama and Georgia commanded $445/st FOB.

Several sources reported difficulty in obtaining prompt product in the region. Producers previously said phosphate availability at Central Florida would be tight through April, and some in the market were quoted mid-March shipping dates for “prompt” material last week.

Sources have been blaming a strong Tampa export market for Central Florida’s supply difficulties. With exports taking a breather last week, however, producers were reportedly casting an eye toward resupplying the Midwest instead. “They’re concentrating on sending unit trains to warehouses right now,” one market source said.

The price of DAP on the Central Florida phosphate market was quoted at $435-$445/st FOB, up from $430-$440/st FOB at last report. The MAP premium was steady at $20/st FOB above DAP.

U.S. Gulf: Trading on the NOLA barge market slowed for the week, sources said, hampered by winter weather and slower terminal demand.

Up to a foot of snow was reported in parts of the Midwest. Despite the drag on short-term business, some touted the precipitation’s silver lining. “It’s a mess everywhere in the Midwest,” said one market watcher, “but moisture is good. We need the moisture.”
Sources quoted actual DAP transactions for the week in a range of $440-$445/st FOB. MAP fell slightly to a range of $442-$445/st FOB.

The weather was just one factor in the market’s softness, some said. “Everyone’s just waiting at this point,” one contact noted. Depending on weather patterns in the coming weeks, the spring phosphate season could lurch into gear at any time.

“It could begin as soon as now in an early year, or as late as mid-March,” said another source. “There’s a foot of snow today in Iowa, but last week it was in the 60s. These late snows can melt in a day or two of good weather, so hopefully we’ll start to see some barge movement.”

Some pointed to stabilizing input costs as a potential green light for the market. “Sulfur going up doesn’t help,” said one contact, “but the drop in ammonia is good. That should help get things going.”

Others, however, noted a correlation between the market’s current stalling point shy of the $450/st mark and a similar lull experienced in the buildup to the fall 2014 season. “Just like last fall, the higher we get toward $450, we hit a wall,” one trader said. “It could just be a new reality with grain prices what they are.”

DAP traded on the NOLA barge market softened to a range of $440-$445/st FOB from the previous week’s $442-$447/st FOB. MAP was called $442-$445/st FOB, a slight decrease from the previous week’s $442-$446/st FOB.

Eastern Cornbelt: DAP remained at $470-$490/st FOB regional warehouses in the Eastern Cornbelt, with the low at Cincinnati and the upper end FOB Maumee, Ohio. MAP was $15-$20/st higher than DAP, depending on location.

10-34-0 was unchanged at $540-$550/st FOB in the region.

Western Cornbelt: The DAP market in the Western Cornbelt was reported at a solid $475/st FOB out of most regional warehouses last week. MAP remained at a $15-$20/st premium to DAP, where available, but several sources reported tight MAP inventories in the region.

The weather conditions made for very slow activity in the region. A southern Missouri contact reported limited movement, noting that “some dealers are finally filling up some space” in p

Ammonium Sulfate

Ammonium Sulfate, Eastern Cornbelt, Market Watch, Southeast, Southern Plains, Western Cornbelt

Eastern Cornbelt: Granular ammonium sulfate remained at $310-$325/st FOB in the Eastern Cornbelt, depending on location, with rail-delivered tons pegged at $315-$330/st.

Ammonium thiosulfate was steady at $345-$350/st FOB in the region.

Western Cornbelt: Granular ammonium sulfate was reported in a very broad range in the Western Cornbelt, from a low of $285/st FOB out of river locations in Missouri to a high of $325/st FOB in the Iowa market. The upper end reportedly reflected higher list prices that took effect in January.

Ammonium thiosulfate was reported at $310-$345/st FOB in the region, depending on location. One Missouri source pegged the common dealer market at the $325/st FOB level in his trade area.

Southern Plains: Ammonium sulfate postings from American Plant Food (APF) firmed $10/st on Feb. 2, with granular postings in Texas moving to $260/st FOB Freeport, $270/st FOB Galena Park, $285/st FOB Fort Worth, and $295/st FOB Littlefield.

APF’s coarse grade postings firmed $10/st as well, moving on that date to $250/st FOB Freeport, $260/st FOB Galena Park, $275/st FOB Fort Worth, and $285/st FOB Littlefield. Standard grade postings moved on Feb. 2 to $240/st FOB Freeport and $275/st FOB Littlefield, with the N-Pac Compacted posting FOB Galena Park firming to $270/st.

The ammonium thiosulfate market remained at $295-$300/st FOB in the Southern Plains region.

South Central: Granular ammonium sulfate pricing was reported at $275-$285/st FOB in the South Central region, with the low FOB Memphis. The upper end of the range reflected the Feb. 2 list price from APF FOB Mermentau, La., which was up $10/st from APF’s Dec. 8, 2014, posting at that location.

Ammonium thiosulfate was tagged at $310-$325/st FOB in the region, with the low at Memphis and the upper end in the Arkansas market on a spot basis.

Southeast: The granular ammonium sulfate market remained at $265/st FOB Hopewell, Va., and Augusta, Ga., with delivered tons reported at $270/st in the Carolinas, $280/st in Georgia, and $295/st in Florida.

Honeywell reportedly has new prices FOB Hopewell for orders placed after Feb. 10, however, with postings moving up on that date $275/st FOB for granular, $255/st FOB for mid-grade, and $220/st FOB for standard.

Ammonium Nitrate

Ammonium Nitrate, California, Market Watch, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf: Barges were being bantered about in the $300-$303/st FOB range, with no activity. Dreymoor is expected to bring in a Georgian cargo in March.

Western Cornbelt: Ammonium nitrate was steady at $360/st FOB for limited tons in the Western Cornbelt.

Southern Plains: The Tulsa ammonium nitrate market was pegged at $345-$350/st FOB in early February.

South Central: Ammonium nitrate was pegged at a flat $350/st FOB in the South Central region.

Southeast: The Tampa ammonium nitrate market was steady at $360-$365/st FOB.

California: Agrium’s CAN-17 postings in California firmed on Feb. 1 to $340/st FOB Woodland and $345/st FOB Helm for truck tons, up $10/st from the previous list price at those locations.

Nitrogen Solutions

Eastern Cornbelt, Market Watch, Southeast, Southern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf: The UAN barge market remained quiet at $260-$265/st ($8.13-$8.28/unit) FOB for recent trades. While some argued the price was firmly at $265/st, others said the market would have to drop below $260/st to spur any sales.

The last done East Coast vessel business was put at $298/mt CFR, with sellers seeking $300-$305/mt CFR for the next round of business.

Eastern Cornbelt: The UAN market for prompt tons FOB Cincinnati was pegged at $270/st ($9.64/unit) for UAN-28 and $308/st ($9.63/unit) for UAN-32. Sources quoted the upper end of the UAN-28 market at $280-$290/st ($10.00-$10.36/unit) FOB inland terminals in Ohio and Indiana, depending on time of delivery.

Illinois sources quoted the UAN-32 market at $310-$320/st ($9.69-$10.00/unit) FOB and $325-$330/st ($10.16-$10.31/unit) rail-DEL. Postings for May-June tons FOB Peru, Ill., moved on Feb. 1 to $316.80/st ($9.90/unit) FOB.

Western Cornbelt: UAN-32 was generally reported in the $305-$315/st ($9.53-$9.84/unit) FOB range out of regional terminals in the Western Cornbelt last week, with the low reported in Missouri and the upper end in Iowa. That range was down roughly $5/st from last report as uncertainties loom about spring demand and cropping choices.

Southern Plains: UAN-32 was quoted at $280-$305/st ($8.75-$9.53/unit) FOB in the Southern Plains, with the low reported out of Gulf Coast terminals. The market out of Oklahoma production points was reported at $300-$305/st ($9.38-$9.53/unit), up slightly from last report, with some sources citing limited loading due to the Verdigris, Okla., plant being down for a turnaround. “It has put some strength into the UAN market,” said one contact.

South Central: The UAN-32 terminal market remained at $290-$305/st ($9.06-$9.53/unit) FOB in the South Central region, with the low reported at Memphis.

Southeast: The UAN-32 market was quoted at a solid $285/st ($8.91/unit) FOB Wilmington, N.C., and Norfolk, Va., up slightly from last report. Pricing out of Georgia terminals remained in the $280-$285/st FOB ($8.75-$8.91/unit) FOB range in early February.

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