U.S. Gulf: While President’s Day trades were reported as high as $315-$317/st FOB, granular prompt prices dropped as the week progressed, falling to $310/st and then to $302-$305/st FOB before winding up at the last reported $299/st FOB level. Sources said there was a lot of product out there, and more on the way.
Prills remained in the $315-$322/st FOB range.
Eastern Cornbelt: Granular urea was quoted at $355-$375/st FOB in the Eastern Cornbelt, down $10/st from last report, with the low end of the range reported in the Cincinnati, Ohio, market last week.
Western Cornbelt: Granular urea remained at $365-$385/st FOB in the Western Cornbelt, with the low reported out of river terminals in Missouri and the upper end in Iowa.
Several regional sources said they continue to expect a big spring for fertilizer demand, but logistics remain a concern. One contact said the timeliness of rail deliveries has improved in recent months, though delays persist.
Northern Plains: Sources reported a wide range of urea pricing in the Northern Plains last week, depending on location and time of delivery. The market out of North Dakota terminals ranged from $405-$415/st FOB, depending on location, with the spring prepay market generally trading about $5/st higher than prompt. Prompt delivered urea was quoted at the $435/st level in North Dakota.
The last spot business for urea out of the Twin Cities market was reported in the $360-$370/st FOB range, but some sources said the market for river open tons had reportedly slipped to as low as $350/st FOB at that location, fueled by a softening NOLA barge market. One supplier was also reported to be offering rail-delivered urea into the region for as low as $390-$395/st for April shipment.
Northeast: Granular urea was reported at $380-$385/st FOB Fairless Hills, Penn., and East Liverpool, Ohio.
Eastern Canada: The granular urea market was quoted at $530-$540/mt FOB Ontario terminals.
India: The tonnage from the MMTC tender is flowing in. Sources say things will slow down a bit until the end of the month, but only because of the delays in the Chinese ports due to the Lunar New Year celebrations.
The MMTC tons are not expected to be used in the current season, which ends just as the last of the material will arrive in the country. Sources say it will most likely be used for some summer applications and to jump-start reserves for the fall season, beginning in July.
The Modi government has bristled at accusations that it has not provided for enough urea. The fertilizer ministry said 7.3 million mt were imported April 2014-January 2015, about 500,000 mt more than the same period a year ago. At the same time, the government said it had put aside about 3 million tons for use through this month against an estimated demand of just under 1.7 million tons.
The complaints of limited urea supplies came with news that third-quarter 2014 imports were lower than previous years. The government countered that existing reserves and domestic production would ensure enough tonnage to see the application season through.
As demand stepped up, new purchases were authorized to provide a buffer for the current season, and also to provide enough material for the start of the summer and fall applications. According to a government statement, the January MMTC tender was designed specifically to ensure enough tons for the upcoming applications.
Even as the government tries to placate angry farmers over perceived shortfalls in urea stockpiles, it must also face complaints from domestic urea producers. Reports out last week from the Fertilizer Association of India (FAI) show that many domestic producers are teeteri