Urea prices remain under pressure on latest sales
Price indications for urea in north Africa and from the Black Sea have fallen, while fresh sales for Nigerian urea have taken place at $255/t fob, as the market continues to shrug off tensions in the Middle East.
Nigerian producer Dangote has sold two 30,000t cargoes of granular urea, probably at around $255/t fob for loading in the second half of this month. Bids were heard in the low $250s/t fob and below last week.
Indications for Egyptian granular urea to European markets have slipped to $300-305/t fob with bids at $295/t fob and below. Argus assessed urea at $305-310/t fob Egypt for Europe yesterday.
Indications for Algerian urea to Europe broadly span $300-310/t fob.
A supplier has sold a small lot of Turkmen granular urea at around $260/t fob Poti for loading in the first half of next month, down from offers around $270/t fob at the end of last week.
US loaded barge prices have also slipped to $300-310/short ton fob Nola, framed by bids and offers, having traded at $311/st fob yesterday. Full-April barges traded at $304/st and $305/st fob earlier today.
The physical urea market has mostly brushed aside the intensifying tensions in the Middle East, after Iran fired drones and missiles at Israel on 13 April, with two cargoes probably concluding lower at $255/t fob Iran on 15 April.
Iran exported about 5mn t of urea last year, while the Middle East accounted for 19mn t out of 52mn t of global trade, Argus data show.
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Brazil's 3tentos cuts soy crop outlook amid floods
Brazil's 3tentos cuts soy crop outlook amid floods
Sao Paulo, 9 May (Argus) — Brazilian agribusiness company 3tentos cut its soybean crop outlook for this season because of the floods ravaging southern Rio Grande do Sul state. An important part of 3tentos' operations is headquartered in Rio Grande do Sul, the second-largest soybean producer in the country, which has been facing heavy rainfall since 29 April that has killed 107 people, according to the state's civil defense. As a result, Rio Grande do Su's soybean crop may drop to 20mn-21mn metric tonnes (t) from 23mn-24mn t previously predicted, according to 3tentos' chief executive Luis Osorio Dumoncel. At least 80pc of soybeans harvested this year are stored in warehouses or ports. "We have been working tirelessly to maintain all operations in the supply of inputs, grains, feed and biofuels," he said during a quarterly earnings call. The company sees a "tiny risk" to its supply chains of pesticides, seeds and fertilizers because of the floods. On the logistics side, alternative export routes have also been used to ship products such as soybean meal, chief operating officer Joao Marcelo Dumoncel said. 1Q results 3tentos' first quarter sales reached R2.68bn ($520mn), a 48.5pc hike from the same period a year earlier, driven by the industry, biodiesel and soybean meal segments. The industry segment, the firm's largest, accounted for R1.52bn in sales, rising by 69pc year-over-year. Soybean meal and other products' revenues totaled R927.6mn, 72pc higher than in the first quarter in 2023. Biodiesel sales increased by 64pc to R591mn, thanks to the increase in biofuel blending mandate to 14pc from 12pc since March. "We are confident that the biodiesel operation will help the company's margin this year," Dumoncel said. The firm's soybean crushing margins rose by 3.3pc in the quarter, settling at R442/t, driven by biodiesel production. 3tentos' grain sales grew by almost 27pc to R560mn. Revenues in the agriculture feedstocks segment — such as fertilizers, pesticides and seeds — reached R601mn in the first quarter, up by 35pc from a year prior. The company's first quarter income totaled R156.44mn, a 51pc increase from the same period last year. 3tentos also started to build its first corn crushing unit to produce ethanol and dried distillers' grain (DDG). The company completed the issuance of debt securities worth R560.73mn this week. By Alexandre Melo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Floods to sow chaos for Brazil’s South logistics
Floods to sow chaos for Brazil’s South logistics
Sao Paulo, 9 May (Argus) — Unprecedented floods in Brazil's southern Rio Grande do Sul state are expected to create even more chaotic logistics situation in the country and could cut fertilizer usage for 2024-25 soybean crop in the state. Heavy rainfall has hit the state since 29 April, culminating in the worst floods ever registered in Rio Grande do Sul. The floods have reached the central part of the state, closing the ports of Pelotas and Porto Alegre, which both handle agricultural commodities, including grains, oilseeds and fertilizers. The high waters are expected to move south, reaching Rio Grande port. The three Rio Grande do Sul ports handled about 44.8mn metric tonnes (t) in 2023, with the larger Rio Grande port accounting for at least 42.6mn t, according to port data. The state's geographic layout and a particularly narrow channel for floodwaters to reach the sea suggests the worst is yet to come in the southern part of the state. Water levels are about to increase in the Lagoa dos Patos, a lagoon that receives water from many rivers and flows to the Atlantic Ocean. But operations are running normally in the Rio Grande port as of 9 May. The national association of cereal exporters Anec project that 343,250 t of soybeans and 131,778 t of soymeal will be shipped in the week ended 11 May, according to port schedule data. Shipments between 28 April and 4 May — which account for the days where rainfall reached its peak and the state began to flood — totaled 183,559t and 133,424t for soybean and soymeal, respectively. Lineup data from maritime agency Williams predicts that soybean exports may total 838,600t, nearly doubling the volumes from the forecast a week ago. The estimated average waiting time for shipping rose to just three days from the two days projected on 29 April. The Rio Grande port was the fifth largest soybean exporter in 2023, with 3.8mn t shipped last year, according to the National Waterway Transportation Agency (Antaq). Waiting time for discharge fertilizers is at around one day, unchanged from the previous week. Rio Grande port was third in terms of fertilizer import volumes in the first quarter 2024, according to lineup data from maritime agency Unimar. Paranagua, in Parana state, received 2mn t of fertilizers, followed by Santos port and Rio Grande, with 1.9mn t and 990,640t, respectively. Lineup data for May and June suggest that Rio Grande is about to receive 540,900t and 66,375t of fertilizers, respectively. Vessels lined-up for Rio Grande may be diverted to other ports, specially for Sao Francisco do Sul, in Santa Catarina state, and Paranagua according to market participants. Even if fertilizer volumes would be discharged as initially planned, the flow to agriculture producing areas would be compromised. The main access to the port, the BR-116 roadway, is already partially blocked, hampering truck flows in the state. Drivers have already been searching for short-stretches to move goods, as long-stretches force them to look for longer alternatives, considering there are around 88 partial and full road blockages in the state as of 9 May. Logistics company Rumo also partially interrupted operations in Rio Grande do Sul state on 6 May. The company has a grain terminal in Rio Grande port and a rail network of around 7,220km in Brazil's South region, which includes Rio Grande do Sul, Santa Catarina and Parana states. Fertilizer companies that operate in Rio Grande do Sul are reportedly trying to move their product to warehouses away from the rivers. Considering the agricultural production, volumes that had already been sowed and were in silos are now soaked. With more damage expected to be measured farmers in Rio Grande do Sul may be discouraged from investing in technology and fertilizers for the upcoming 2024-25 soybean crop. More rain forecast for the weekend Brazil's national meteorological institute Inmet expects rainfall to intensify once again in Rio Grande do Sul starting this Friday between the state's center-north and west portions. Rain levels are expected to subside by 12 May, but may surpass 100mm before then. The coastal areas in the north regions and south of Santa Catarina state are also expected to be affected, according to Inmet. By Renata Cardarelli and Nathalia Giannetti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India's GSFC receives offers in tender to buy DAP
India's GSFC receives offers in tender to buy DAP
London, 9 May (Argus) — Indian importer GSFC likely received offers from two trading firms ranging in the high-$510s/t cfr to around $520/t cfr, under its 8 May tender to buy 100,000t of DAP. The tender sought offers for 50,000t of natural-coloured DAP and 50,000t of "coffee-brown" DAP for delivery to Kandla or Munda on India's west coast at the end of June or in early July. Fellow importer NFL has scrapped its 6 May tender to buy 50,000t of DAP for delivery by the end of May. It had received one offer from a trading firm. Another importer Smartchem on 8 May issued a counterbid of $479/t cfr against the six offers received in its 6 May tender. The initial offers had ranged from the low-$510s/t cfr to the low-$520s/t cfr. Smartchem gave the companies which had offered until close of business on 9 May to accept. The tender had sought 60,000t of DAP in two 30,000t cargoes for delivery by the second half of June. Importer Hindalco earlier this week awarded its 1 May tender to buy 40,000-45,000t of DAP to a regional trading firm at around $508/t cfr, initially reported as around $509/t cfr. By Tom Hampson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US amsul imports reach record high in March
US amsul imports reach record high in March
Houston, 8 May (Argus) — US ammonium sulfate (amsul) imports reached a record high in March, bringing importsfor the current fiscal year to date to record high levels as well. US imports of ammonium sulfate reached 171,200 metric tonnes (t) in March, according to the latest data from the US Census Bureau. Monthly imports in March topped the previous record high set in February by 2,300t . Volumes in March 2024 were double the March average of the past 10 years. Year to date imports during the 2024 fiscal year — which runs July-June to track the fertilizer crop year — through March reached 824,000t, up 75pc from the year prior. Offshore imports arriving at Nola in April are currently estimated at nearly 51,100t, according to bill of lading data. Amsul supply has been short this spring, caused by several production outages beginning in January](https://direct.argusmedia.com/newsandanalysis/article/2531726). Prices have remained elevated for amsul because of limited supply, while other nitrogen fertilizers have been on the decline in recent weeks. Recent imports were priced at $407.5/st fob, compared to year-ago levels of $327.5/st fob. By Meghan Yoyotte US ammonium sulfate imports ’000t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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