U.S. Gulf: The bears were again in charge of the NOLA granular urea market last week.
While early week sales were reported as high as $387-$391/st FOB, prices quickly eroded into the low $380s/st FOB, with reports that $370/st FOB was achieved by the end of the week. There were rumors of $360/st, but some suggested those were May paper trades, not prompt physical tons as the week ended.
Sources attributed the drop to nervous players in the market who were more concerned about seeing tons sold, even if it meant a lower price. An influx of imports was also cited for the drop, as was wet weather that has slowed movement across much of the heartland.
Market bulls argued that there was really no reason for urea price erosion at this time, since the wet weather will likely cause farmers to shift from ammonia to urea and UAN for the huge 97.3 million acre corn crop.
July-February imports were up 37 percent, to 5.73 million st from the year-ago 4.2 million st. February imports were up 31 percent, to 705,735 st from the year-ago 536,864 st.
Eastern Cornbelt: Granular urea was quoted in the $435-$450/st FOB range in the Eastern Cornbelt region, with the low in Cincinnati and the upper end in the East Liverpool, Ohio, market. Illinois sources pegged the dealer market at the $445/st FOB level or lower last week, depending on location.
Western Cornbelt: Granular urea was quoted at $435-$450/st FOB in the Western Cornbelt region, down some $5-$10/st from last report, with the low reported in the St. Louis, Mo., market last week.
Southern Plains: Granular urea pricing continued to slip in the Southern Plains. Sources pegged the dealer market at $425-$435/st FOB out of the Tulsa, Okla., market last week, depending on supplier, with the low reflecting Koch’s latest reference price. That range reflected a $10/st drop from last report.
South Central: South Central sources quoted the granular urea market at $435-$445/st FOB regional terminals, down $5/st from last report, with the low quoted in Arkansas and the upper end in Kentucky. The dealer market FOB Memphis was tagged at the $440/st level at midweek, down $10/st from last report
Southeast: While southern Florida was experiencing summer-like weather with high heat and humidity last week, severe thunderstorms were expected to bring hail, heavy rains, strong winds, and even the threat of tornadoes to parts of Georgia and Alabama on April 11.
The strong storm system was moving into the region from the Midwest, where it left heavy snows, ice, and wind damage in many areas. Parts of the Carolinas were also expecting more moisture from the storm late in the week.
Wet weather has delayed corn planting in the Southeast, and sources in some areas said growers have begun swapping their corn seed for soybeans or cotton. In areas of Georgia, however, sources reported busy fieldwork last week ahead of the incoming precipitation. “We are running wide open down here now with a tremendous amount of field activity taking place,” said one Georgia contact at midweek.
In the Carolinas, by contrast, wet conditions continued to delay fieldwork. “We’re extremely wet. We need some dry weather,” said one Carolina source last week. “We’re getting behind, and this rain will put us out again for awhile.”
Spot fertilizer prices changed only slightly from last report. Granular urea pricing had reportedly slipped to $460-$465/st FOB port terminals in the region, with some speculating that lower prices were likely in the near term.
India: The wait is over. IPL called a tender to close April 12, just after Green Markets went to press. Sources expect to see Iran and CIS material domin