U.S. Gulf: The granular prompt barge market found its footing last week. Sources reported new trades within the $325-$330/st FOB range, with the price working its way up as the week progressed. One player predicted that buyers would be unable to find sub-$330/st FOB product in the next round of trading.
Sources said the floor was found for simple reasons – demand and lower prices. Several barges have traded in the past few weeks as prices dropped to the $320s/st FOB. As a result, sources said the swollen import inventories have been significantly depleted.
As with other commodities, well-positioned upriver cargoes were garnering a premium to barges still at NOLA.
Most agreed last week that prills have come down to be more in line with granular. The range was called $335-$350/st FOB.
Eastern Cornbelt: Urea pricing had reportedly slipped to $385-$410/st FOB in the Eastern Cornbelt region, with the low in Illinois.
Western Cornbelt: Sidedress movement of urea was picking up in the region last week. Sources in both Missouri and Iowa quoted the low end of the regional terminal market at $380-$390/st FOB, with several sources quoting $385/st FOB as a common dealer price for granular urea out of river locations.
The upper end of the regional range was pegged at the $400/st FOB level out of inland warehouses.
Southern Plains: Granular urea pricing had reportedly fallen to $365-$370/st FOB the Tulsa, Okla., market, with reports that some deals may be taking place slightly under that range as the week advanced.
South Central: Sources reported some urea movement taking place on corn in the South Central region as growers try to replace nitrogen lost to excessive moisture. Urea movement on rice remained a “nonevent” last week, said one source, due in part to significant cuts in rice acreage in the region.
Urea pricing out of regional terminals was down some $20/st from last report, with the low end quoted at $380-$385/st FOB Memphis and the upper end reported at $400/st FOB Pine Bluff, Ark., and Greenville, Miss. Other spot prices last week included $390/st FOB Owensboro, Ky., and $395/st FOB Mermentau, La.
“Rice acreage is down, and that’s playing into this urea market for sure,” said one source. “The feeling is that there’s still so much urea out there that supply will overshadow demand.”
Southeast: Much of the Southeast was wet last week, although Georgia sources reported brisk planting activity at midweek.
Carolina contacts said most of the corn is planted and growers were focusing on cotton, tobacco, and peanuts before last week’s precipitation stalled activity. A North Carolina source said his location received 2-3 inches of rain over the previous weekend, which pushed planting progress back roughly 20 percentage points from the average for this time of year.
Sources reported pressure on spot nitrogen prices in the region. Granular urea pricing had reportedly slipped to $430-$435/st FOB most port terminals in the Southeast, down $10/st from last report.
India: Any hopes of an early tender call from India were dashed during the IFA meeting in Chicago.
Sources from around the globe were convinced the Indians will not call a tender until sometime in the first half of June. Some, who had earlier predicted a late-May call, were especially pessimistic and left Chicago thinking nothing will happen in India until June 15.
Traders say holding off on the tender call as long as possible makes sense for the Indians. The Indian supplies on hand are sufficient, and the tons in the pipeline from the April IPL tender will keep farmers happy for some time.
Sources at the I