U.S. Gulf: Prompt granular business began the week at $430/st FOB and worked its way up to $445-$450/st FOB by week’s end. Sources were quoting $455/st FOB for August. Prills were in a tighter range at $445-$455/st FOB.
Eastern Cornbelt: The granular urea market in the Eastern Cornbelt was quoted at $485-$515/st FOB regional terminals.
Western Cornbelt: Granular urea remained at $485-$500/st FOB regional terminals in the Western Cornbelt. In the Northern Plains market, Agrium’s granular urea postings moved on July 13 to $525/st FOB Marion, S.D., and North Dakota warehouses at Alton, Carrington, Colfax, and Scranton; and $530/st DEL in Minnesota, Wisconsin, and the Dakotas.
Southern Plains: Granular urea pricing was quoted at $485-$490/st FOB the Tulsa market at mid-month, and was reportedly in thin supply due to lock closures and low water on the Arkansas River.
South Central: The granular urea market was quoted at $515-$520/st FOB terminals in the South Central region.
Much of the South Central region was “hot and steamy” last week, according to one Arkansas source. Drought conditions worsened in Arkansas, Tennessee, and Kentucky, but crop conditions in Louisiana and Mississippi were generally favorable in mid-July.
USDA’s crop ratings showed the extent and location of drought stress in the region. As of July 15, just 6 percent of Kentucky’s corn fell in the good or excellent categories, with fully 77 percent of the acreage rated as poor or very poor. In Tennessee, 18 percent of the corn was good or excellent last week, with 55 percent in the poor or very poor categories. Growers in Louisiana were already shelling corn in some areas, and sources said some growers are planning to seed double-crop soybeans after corn due to the early harvest.
Soybeans in the good or excellent categories ranged from a low of 16 percent in Kentucky to 73 percent of the acreage in Mississippi. Cotton quality was similar, ranging from just 17 percent good or excellent in Missouri to 71 percent in Mississippi. Rice conditions were better in the region, with 58-68 percent of the crop in Arkansas and Louisiana rated as good or excellent, compared with 72-79 percent in Missouri, Mississippi, and Texas.
Southeast: The granular urea market was pegged at $560-$570/st FOB port terminals in the Southeast, with several locations out of product.
Heat advisories were posted last week for parts of North Carolina, and scattered thunderstorms sparked wildfires in areas of Georgia early in the week. Thunderstorm activity was also reported in central Alabama and central Florida last week, with heavy showers reported in some locations.
According to the July 17 U.S. Drought Monitor, extreme to exceptional drought was reported in a band stretching from eastern Alabama through central Georgia. Florida was relatively drought-free in mid-July.
Pacific Northwest: Effective July 13, Agrium’s granular urea postings moved to $525-$535/st DEL in Montana and Wyoming, depending on location; $540/st FOB West Woodburn, Ore.; $545/st FOB Pella, Idaho, and Washington warehouses at Glade, Warden, Moses Lake, Plymouth, and Wilson; $550/st DEL in Washington, Idaho, northern Nevada, the Klamath Basin, and Oregon; $560/st DEL in northern and central Utah; and $565/st DEL in southern Utah.
India: The IPL tender showed many in the industry that the urea market was softer than some had expected. In the end, the amount IPL will pay was about $125/mt less than STC paid in May.
Sources say the bid for deliveries to West Coast ports was $406/mt CFR, with East Coast ports at $408/mt CFR and smaller ports pegged at $409-$410/