U.S. Gulf: Granular prompt barge prices continued to climb last week. Most said the market had achieved $400/st FOB by week’s end, having worked its way up from $375-$380/st FOB early in the week. Sources continued to cite good demand from Texas and the Southern Plains and lower inventories inland, where buyers have waited to buy.
One source last week wondered if there is enough urea in the system and on the way to serve an early spring. Others wondered if the current price surge might eventually peter out as buyers build supplies.
Chinese granular may fill a void. Sources in the past two weeks said Chinese product at much lower prices was in the U.S. market. Chinese product last week was trading up, starting out at $365/st FOB and reported at $385/st FOB by week’s end.
In the meantime, prills also began to move up, with recent trades at $370/st FOB. Others, citing short supplies, were predicting that $390/st FOB was just around the corner. Sources said that while the Lifeco plant in Libya is in startup mode, production remains too tenuous to assure near-term supplies to NOLA.
Eastern Cornbelt: Urea and phosphate pricing continued to move up quickly in the Eastern Cornbelt, fueled by rapidly firming NOLA barge markets and industry chatter of potentially tight supplies as the spring planting season approaches.
The granular urea market was pegged at a firm $420-$440/st FOB in the Eastern Cornbelt, up some $15-$30/st from the previous week, with the upper end of the range reported on a spot basis as the week progressed.
Western Cornbelt: The granular urea market had reportedly firmed to $420-$430/st FOB regional terminals in the Western Cornbelt, with the higher numbers reported later in the week. That range was up $20/st from the previous week, and a full $45-$55/st higher than prices reported at the start of the new year.
Southern Plains: Fueled by steady demand in the region, a firming NOLA market, and reports of potentially tight supplies in advance of the spring planting season, the granular urea market had firmed to $415-$420/st FOB the Tulsa market, up some $45/st from late December pricing levels, and a full $80/st higher than late November levels.
The Houston urea market had also firmed to the $415/st FOB level last week, up $55/st from late December.
South Central: The granular urea market last week was quoted at $415-$420/st FOB Little Rock, Ark., Memphis, and other terminals in the South Central region, up a full $50/st from late December pricing levels.
One contact said growers and retailers who decided to put off their spring fertilizer purchases may be in for a shock when prices are adjusted to reflect the higher replacement costs.
Southeast: Urea prices were firming rapidly in the Southeast. Sources quoted the market in the $410-$420/st range FOB port terminals, with the upper end the more prevalent number as the week advanced. Reference prices at some locations were considerably higher; sources said urea postings FOB Savannah, Ga., had firmed to $440/st from the previous week’s $390/st level.
Unsettled weather conditions lingered in the Southeast last week, but the previous week’s bitter cold had passed. Sources said temperatures dropped to as low as 7 degrees in North Carolina during early January’s “polar vortex,” and Florida citrus growers were concerned about frost damage.
As the cold weather moved out, however, gusty winds and torrential rains moved in, causing flooding and power outages throughout Florida, Georgia, and the Carolinas. Portions of Florida’s Palm Beach County were hit with an incredible 12-23 inches of rain on Jan. 9-10.
More rain and cold weather was in store for parts of the r