U.S. Gulf: Granular urea barges were weaker last week, though just how weak was at issue. Some said as low as $300/st FOB, while others claimed $305/st FOB. While some called the low price forward and Chinese, others said it was prompt and Mideast.
Others maintained that the low numbers quickly sold out and the price moved up, with some claiming as high as $320-$322/st FOB. These sources were hoping for firm numbers for the end of rice season.
Still, bears in the market predicted that low international prices would drive more cargoes to the U.S. and further weaken prices.
Prills remained in short supply, and were said to be trading at $340/st FOB.
Eastern Cornbelt: Granular urea pricing had reportedly fallen to $370-$390/st FOB in the Eastern Cornbelt region, although there were few new sales to test the market in late June.
Western Cornbelt: The granular urea market was quoted at $350-$370/st FOB most regional terminals, reflecting another $10-$20/st drop. Most sources put the market out of river terminals in the Western Cornbelt at $350-$360/st FOB last week.
Northern Plains: Granular urea pricing in the Northern Plains was down from last report, with sources quoting the dealer market at $350/st FOB the Twin Cities and $380-$400/st FOB or DEL in the North Dakota market. Out of specific terminals, Dakota sources pegged urea pricing last week at $380/st FOB Carrington, N.D., and $400/st FOB Craven, S.D.
Northeast: Strong thunderstorms were reported in parts of southern New England early in the week, and sources reported unseasonably hot and humid weather throughout the region. More rain was in store for southern New England as the week advanced, with flash flood watches in effect for many areas on June 27-28.
One Pennsylvania contact said temperatures were in the 90s in his location at midweek, and crops were responding with rapid growth. Growers in upstate New York were still planting the last fields to silage corn, soybeans, and vegetable crops. As of June 24, USDA rated fully 87 percent of the Pennsylvania corn crop as good or excellent.
Granular urea pricing in the Northeast was down some $10-$15/st from last report, with the dealer market pegged at $410-$415/st FOB in the region last week.
Eastern Canada: The granular urea market was quoted at $500/mt FOB in Quebec and in tight supply. Urea pricing in the Ontario market was pegged at the $525/mt FOB level, down some $40-$50/mt from May pricing levels, but sources said volumes were down and regional suppliers were “meeting market conditions” as they encounter them.
India: The STC tender that closed June 22 showed dramatically lower prices. The winning offer of $303.33/mt CFR from Ameropa raised eyebrows and perplexed many in the industry.
The amount of material offered in the tender – about 4 million mt – and the low prices indicated for many the state of the global urea market. Even discounting the Ameropa offer, other offers were $10-$15/mt off the last tender.
The lowest offers after Ameropa were Rare Earth at 150,000 mt for $303.43/mt CFR; Transglobe at 270,000 mt for $304.10/mt CFR; Dreymore at 360,000 mt for $311.11/mt CFR; and Blue Deebaj at 150,000 mt for $311.44/mt CFR.
All told, the lowest five companies offered 1.07 million mt. Firm offers under $305/mt CFR totaled more than 500,000 mt.
Sources noted that none of the Arab producers offered their usual token amounts. One trader opined that perhaps the Arab producers did not want to indicate any concession to a market spiraling downward.
Ameropa has reportedly been given an award for the initial 70,000 mt and is pushing for a second award in a like amount. Sources report that Trans