U.S. Gulf: The market was quoted at $355-$360/st FOB. The third vessel load of Belarus product was reported to have arrived.
Eastern Cornbelt: Potash remained at $400-$417/st FOB in the Eastern Cornbelt, depending on grade and location.
Western Cornbelt: Potash remained at $405-$417/st FOB in the Western Cornbelt, with the top of the range reflecting reference levels for white granular tons. Most sources reported the bulk of pricing quotes for red potash in the $405-$410/st FOB range last week.
Southern Plains: Effective March 30, Intrepid Potash’s Trio postings FOB Carlsbad, N.M., are slated to firm to $385/st for standard, $395/st for granular, and $400/st for premium. Those levels represent a $10/st increase from the company’s previous list prices.
California: Potash was unchanged at $518-$535/st FOB warehouses in California, depending on grade and location, with the low for 60 percent and the upper end for 62 percent granular or soluble. Delivered potash remained at $525-$535/st in the state.
Crystalline potassium nitrate was steady at $950/st FOB for bulk and $1,020/st FOB for bags.
Sulfate of potash (SOP) remained at $722-$735/st FOB in California, with inventories described as very tight.
Pacific Northwest: Potash remained at $461-$475/st FOB and approximately $480-$495/st DEL in the Pacific Northwest, depending on grade and location. Sources reported tight supplies for tons railed from Canada. “We are extremely lucky that areas east of the Rockies are still experiencing winter weather, so the West is not competing for re-supply,” said one contact.
The potash market FOB Utah mines was steady at $420/st FOB for 60 percent standard and $425/st FOB for 60 percent granular.
The SOP Magnesia market was unchanged at $481/st FOB in the Pacific Northwest, but sources continued to report very tight supplies, calling it “the one product that looks to be an issue, at least for the next 30 days.” One source commented that “dealers and distributors are using different sources of magnesium to keep growers applying products.”
The sulfate of potash (SOP) market was also strictly allocated in the region, with the market quoted firmly in the $768-$778/st FOB range for the last sales. “Growers have switched back to muriate of potash, creating large demand destruction for SOP in the Northwest,” said one source.
Western Canada: The Western Canada potash market remained at $470-$480/mt FOB inland warehouses, with the Saskatchewan mine price reported at $445-$450/mt FOB to Canadian customers.
China: Canpotex has been seeking $330/mt CFR from China, up $25/mt from the year-ago contract of $305/mt CFR, according to The Mosaic Co. CEO James Prokopanko, speaking before the Bank of America Merrill Lynch Global Agriculture Conference in late February.
Prokopanko said China is seeking a rollover and is citing low freights as one reason. He said the Baltic Dry Index is at a record low. “We’re now seeing year-over-year reductions of about 35 percent,” he said. “These are from Vancouver to Asian markets, which turns out to be about $10/mt.”
Prokopanko said his advice to Canpotex is to just hold firm. “I think the Chinese are likely to settle first with somebody like the Belarusians or Uralkali,” he said. “I don’t know what’s going to happen, but I’m in no rush. Let those contracts get settled and no need to push it. We are running at pretty good rates now, everything we’re producing we’re shipping.”