Seems the pigs are lining up at the trough to gouge farmers again. It just amazes me how these crooks get away with this BS time and time again.
But farmers are the ones to blame. This BS attitude that were told we have to produce more to feed the world shit. IT goes on and on and on.
Well pay us for our product and then maybe the screwing will feel good.
AMMONIA
Demand in the Corn Belt for DAP has come around earlier than expected in some markets, which, against thin supplies, is firming prices. (DTN graph by Kim Adrian)World market supplies continued very tight through September, and prices out of Yuzhnyy in the Former Soviet Union jumped sharply to $410 mton fob (free on board -- seller fulfills his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment). Prices for Mideast spot tonnage also moved up to $410. Strong demand for ammonia from DAP producers continues worldwide. Many Eastern European and FSU (Former Soviet Union) ammonia plants were down for maintenance turnarounds through September, which kept supplies tight. Demand for U.S. fall corn plow-down is getting under way earlier than expected, which also expanded demand against thin supplies. The preceding all worked to support high world ammonia market prices. World ammonia market prices look to keep increasing in the short term.
Domestic ammonia prices at interior terminals moved higher into the $580s in the central Corn Belt to just over $600 in the west. The staged re-opening of the west leg of the pipeline ahead of schedule seems not to have had much effect to increase supply. High wheat and corn prices are supporting farmers' ability to afford higher input prices, and we look for domestic ammonia prices to run steady to slightly higher in the short term.
UREA
World urea market prices continued in their dramatic upward trend through the month with major increases seen across the board. Export urea prices from Yuzhnyy and Baltic Sea ports traded up to $340 mton fob late in the month. Prices for urea from Middle East producers also rose, driven by demand from the U.S. and South America. Late in the month, India closed another tender and could acquire upward of 500,000t if other traders are willing to meet the low offer from Transammonia at $350 mton cfr (cost and freight -- seller pays the cost and freight necessary to bring the goods to the named port of destination). Much of the product offered in the Indian tender was backed by Chinese product. Yuzhnyy prices at $340 fob are way out of kilter with this market and need to be some $35 to $40 cheaper to be competitive in India. With the pressure of placing both Baltic and Yuzhnyy tons for October, it could be that following the Indian tender, buyers of FSU product here could negotiate lower prices. In addition, European buyers of high-priced Egyptian product (offered at $380 to $390 mton fob) seemed to have backed away from new commitments at month's end. We look for world urea prices to run firm but flat in the short term.
Domestic urea prices moved sharply higher at NOLA (New Orleans) through the month. There are a number of import urea cargoes on the way, which should begin unloading late September through October, and, with river closing looming in the next few weeks, there could be a lot of urea barges bobbing on the water toward year's end. Demand in the wheat belt has gotten an early start and, with supplies thin, prices have been firming. For the short term, we expect domestic urea prices could move higher. It is a long time until spring, however, and we would be reluctant to buy in heavily for spring during the current frenzy.
UAN
UAN prices continue to move higher both at inland terminals and at NOLA as supplies held thin. The domestic UAN market is still suffering the effects of earlier producing plants' actions to short the market. Producer margins continue very wide thanks to natural gas prices holding at around $4.00 mcf. Gas at that price allows a cash cost of production of $3.03/unit N, while recent indications at the wholesale level in the Eastern Corn Belt have product selling at $10.00/unit N.
Regarding prices for competing forms of N, ammonia looks to stay strong for the short term, but world urea market prices may have reached a top, and there is much imported product due to land soon. We still expect supplies of UAN could get long over the turn of the year and believe lower numbers could become available in the medium term.
DAP
Late in the month, U.S. DAP was sold at $530 to $545 mton fob, reflected in sales for shipment to Mexico and Central America. Despite rising by $40 to $545, the price nonetheless reflects an almost $40 discount to the value of DAP in the U.S. domestic NOLA barge market, where prices jumped to $530 late in the month and at month's end prices stood at $560 to $570 ston ($625 mton). U.S. producers are committed beyond mid-October with large contract shipments still to execute for India and sizeable orders on the books for the U.S. domestic market and elsewhere. Tight supply in North America relative to demand has encouraged importers and traders to book up to an estimated 175,000t Russian and Moroccan DAP/MAP for October shipment to Canada and the U.S. While world DAP market prices look set to remain firm in the short term, there is growing sentiment they may be approaching a ceiling. Following healthy South American DAP/MAP demand in recent months, importers in Argentina, Brazil and Uruguay have been absent in recent weeks, having covered their near-term requirements. We expect near-term world DAP market prices could run flat to slightly higher.
Domestic DAP prices increased sharply through the month at NOLA, reflecting world market conditions. Some wholesalers are seeing the beginnings of demand destruction in the Wheat Belt and pasture markets, but high corn prices could encourage at least normal demand levels in the central Corn Belt. Demand in the Corn Belt for DAP has come around earlier than expected in some markets, which, against thin supplies, is firming prices. While short-term prices at interior terminals could keep moving up, if world prices flatten, domestic prices could be reaching a peak as well.
POTASH
Several wholesalers we spoke with toward month's end indicated supplies were very short and, as with DAP, some Corn Belt demand was coming in unexpectedly early. The coupling of thin supply with the early onset of corn preplant demand sent potash prices higher. Supplies of barges at NOLA continued thin, and light to moderate demand ran prices up $20 to $370. We expect potash prices to run steady to slightly higher in the short term.
AH wait I dropped the soap in the shower. Ouch.
But farmers are the ones to blame. This BS attitude that were told we have to produce more to feed the world shit. IT goes on and on and on.
Well pay us for our product and then maybe the screwing will feel good.
AMMONIA
Demand in the Corn Belt for DAP has come around earlier than expected in some markets, which, against thin supplies, is firming prices. (DTN graph by Kim Adrian)World market supplies continued very tight through September, and prices out of Yuzhnyy in the Former Soviet Union jumped sharply to $410 mton fob (free on board -- seller fulfills his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment). Prices for Mideast spot tonnage also moved up to $410. Strong demand for ammonia from DAP producers continues worldwide. Many Eastern European and FSU (Former Soviet Union) ammonia plants were down for maintenance turnarounds through September, which kept supplies tight. Demand for U.S. fall corn plow-down is getting under way earlier than expected, which also expanded demand against thin supplies. The preceding all worked to support high world ammonia market prices. World ammonia market prices look to keep increasing in the short term.
Domestic ammonia prices at interior terminals moved higher into the $580s in the central Corn Belt to just over $600 in the west. The staged re-opening of the west leg of the pipeline ahead of schedule seems not to have had much effect to increase supply. High wheat and corn prices are supporting farmers' ability to afford higher input prices, and we look for domestic ammonia prices to run steady to slightly higher in the short term.
UREA
World urea market prices continued in their dramatic upward trend through the month with major increases seen across the board. Export urea prices from Yuzhnyy and Baltic Sea ports traded up to $340 mton fob late in the month. Prices for urea from Middle East producers also rose, driven by demand from the U.S. and South America. Late in the month, India closed another tender and could acquire upward of 500,000t if other traders are willing to meet the low offer from Transammonia at $350 mton cfr (cost and freight -- seller pays the cost and freight necessary to bring the goods to the named port of destination). Much of the product offered in the Indian tender was backed by Chinese product. Yuzhnyy prices at $340 fob are way out of kilter with this market and need to be some $35 to $40 cheaper to be competitive in India. With the pressure of placing both Baltic and Yuzhnyy tons for October, it could be that following the Indian tender, buyers of FSU product here could negotiate lower prices. In addition, European buyers of high-priced Egyptian product (offered at $380 to $390 mton fob) seemed to have backed away from new commitments at month's end. We look for world urea prices to run firm but flat in the short term.
Domestic urea prices moved sharply higher at NOLA (New Orleans) through the month. There are a number of import urea cargoes on the way, which should begin unloading late September through October, and, with river closing looming in the next few weeks, there could be a lot of urea barges bobbing on the water toward year's end. Demand in the wheat belt has gotten an early start and, with supplies thin, prices have been firming. For the short term, we expect domestic urea prices could move higher. It is a long time until spring, however, and we would be reluctant to buy in heavily for spring during the current frenzy.
UAN
UAN prices continue to move higher both at inland terminals and at NOLA as supplies held thin. The domestic UAN market is still suffering the effects of earlier producing plants' actions to short the market. Producer margins continue very wide thanks to natural gas prices holding at around $4.00 mcf. Gas at that price allows a cash cost of production of $3.03/unit N, while recent indications at the wholesale level in the Eastern Corn Belt have product selling at $10.00/unit N.
Regarding prices for competing forms of N, ammonia looks to stay strong for the short term, but world urea market prices may have reached a top, and there is much imported product due to land soon. We still expect supplies of UAN could get long over the turn of the year and believe lower numbers could become available in the medium term.
DAP
Late in the month, U.S. DAP was sold at $530 to $545 mton fob, reflected in sales for shipment to Mexico and Central America. Despite rising by $40 to $545, the price nonetheless reflects an almost $40 discount to the value of DAP in the U.S. domestic NOLA barge market, where prices jumped to $530 late in the month and at month's end prices stood at $560 to $570 ston ($625 mton). U.S. producers are committed beyond mid-October with large contract shipments still to execute for India and sizeable orders on the books for the U.S. domestic market and elsewhere. Tight supply in North America relative to demand has encouraged importers and traders to book up to an estimated 175,000t Russian and Moroccan DAP/MAP for October shipment to Canada and the U.S. While world DAP market prices look set to remain firm in the short term, there is growing sentiment they may be approaching a ceiling. Following healthy South American DAP/MAP demand in recent months, importers in Argentina, Brazil and Uruguay have been absent in recent weeks, having covered their near-term requirements. We expect near-term world DAP market prices could run flat to slightly higher.
Domestic DAP prices increased sharply through the month at NOLA, reflecting world market conditions. Some wholesalers are seeing the beginnings of demand destruction in the Wheat Belt and pasture markets, but high corn prices could encourage at least normal demand levels in the central Corn Belt. Demand in the Corn Belt for DAP has come around earlier than expected in some markets, which, against thin supplies, is firming prices. While short-term prices at interior terminals could keep moving up, if world prices flatten, domestic prices could be reaching a peak as well.
POTASH
Several wholesalers we spoke with toward month's end indicated supplies were very short and, as with DAP, some Corn Belt demand was coming in unexpectedly early. The coupling of thin supply with the early onset of corn preplant demand sent potash prices higher. Supplies of barges at NOLA continued thin, and light to moderate demand ran prices up $20 to $370. We expect potash prices to run steady to slightly higher in the short term.
AH wait I dropped the soap in the shower. Ouch.
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