U.S. Gulf: Urea prices led the way for other nitrogens last week, bolting out of the gate as good weather, good demand, and the prospects for 96 million acres of corn all took hold.
The market essentially ran up $100/st FOB, starting in the low $600s/st FOB near where it had left off the week before, and easily topping the $700/st FOB mark. A conservative read on the range was given as $620-$725/st FOB, with quotes and expectations of $730-$735/st FOB as the week ended.
Sources said most buyers were looking for prompt material ready to go in April. However, May product was reported to be moving up. May trades were increasing as the week progressed, with the range called $535-$615/st FOB.
Sources debated whether there would be enough product for the spring season, with one saying the Cornbelts would still require a lot more urea. Others said it would be very risky for importers to bring in more product now, as an early start to the season may also mean an early end to the season. As a result, any tons coming in later might find a completely different price and demand scenario.
Prills, though thinly traded and in short supply, were trying to follow, with sources reporting trades in the $550-$630/st FOB range. Others argued they should be trading closer to granular.
Eastern Cornbelt: Granular urea had firmed dramatically to $690-$740/st FOB in the region as the week advanced, but product was unavailable at some locations.
Western Cornbelt: The granular urea market was quoted in an incredibly wide range at $650-$750/st FOB Western Cornbelt terminals last week, depending on location, time of the week, and whether pricing had been adjusted to accurately reflect new replacement costs. Those at the low end of the range acknowledged that “prices have moved very fast and warehouse prices have not caught up yet,” but were “moving up about every day.” The upper end of the range was reported out of terminals in the Missouri market on April 5.
Southern Plains: The granular urea market was pegged at $690-$740/st FOB the port of Catoosa last week, reflecting a steady run-up in pricing as the week advanced. Sources confirmed brokered sales in the $700-$715/st range at the port midweek and “moving up with every phone call,” said one source on April 4.
Effective April 6, Koch reposted urea at $740/st FOB Enid, Okla., up another $50/st from its April 4 posting of $690/st FOB – $125/st higher than its March 24 list price, $145/st higher than its March 22 reference price, and a full $165/st higher than Koch’s March 7 urea posting at Enid and Inola/Catoosa.
South Central: Sources quoted the granular urea market in the $685-$690/st FOB range out of Arkansas and Tennessee terminals at midweek, but a surging NOLA market was prompting some pricing changes late in the week. One regional supplier said he had moved his terminal price to $750/st FOB on April 5, while others reported that they were not quoting urea due to tapped out inventories.
Southeast: Granular urea had reportedly firmed from $670/st to $690/st FOB Wilmington, N.C., for limited tons as the week advanced, with reports that most other locations were out of product last week. Those prices were up some $120-$130/st from levels reported in mid-March.
Indonesia: Pusri was able to sell half of the 60,000 mt it offered in its March 30 tender. Dreymoor walked off with the 30,000 mt with a bid of $470.10/mt FOB.
Pusri set the minimum price at $470/mt FOB. In the run-up to the tender, industry sources expected to see prices in the low $450s/mt FOB. The higher floor price set by Pusri indicates the producer is more bullish than many of the traders.