May 22, 2015
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CF will officially be taking their Woodward, OK plant
offline on June 17th. While this is subject to change,
we feel fairly certain this is a firm date.
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Truck loading out of the facility will be extremely
limited during the turnaround. CF plans to have the
facility down at least 60 days.
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U.S. importers to the Texas Coast are up against
slightly firmer values ahead of an uncertain western
Texas run.
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Prompt demand has slowed across most areas
with some interest filtering in from Nebraska and
the northern portions of Iowa, Illinois and Indiana.
Ammonia trades are quiet as the market waits for
side dress demand and application to begin. Low
inventories are promoting stability on anhydrous
and will drive the price reset as Q2 ends.
CF has remained bullish on ammonia from a supply
standpoint. Current offers are flat to firm and, in
some cases, have seen slight increases at isolated
terminals.
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Nola DAP values have increased slightly with
most business being done between a small group
of traders and producers. End users are buying
upriver barges at a slight premium to meet the
end of spring demand.
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While Nola DAP is somewhat biddable today
domestic material has tightened up creating a
situation that has domestic producers slightly
more bullish today.
There is little action in potash market as many are
waiting for PotashCorp to establish Q3 terminal
pricing in June. From a supply and demand
standpoint, the market is well-supplied and
producer inventories are building.
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10-34-0 supply is starting to rebuild across the
Midwest and more traditional pricing is starting
to surface in some geographies.
The T Kerley, McPherson, KS facility has not
achieved full production capacity. Loads
continue to be diverted away from the Kansas
facility.
Honeywell has stepped back into the market in
the Eastern United States, terminal sales are still
not available but truck and rail delivered tons are
available.
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Koch has decided not to bring a BPC potash vessel
to Nola this summer. Negative margins on product
they brought here during spring and a belief the
market is well supplied going forward lead to the
decision.
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Shed physical values are relatively flat, but are
expected to see a marginal increase as the next
round of applications begins next week.
Physical demand has slowed as most areas shut
down due to wet weather. New inquiries are
immerging in the Northern Plains and in isolated
pockets of the Southern Plains. Prompt values
remains firm and are expected to hold as Nola
values remain solid through the rice run.
Uncertainty beyond 60 days has many cautiously
buying for fill and fall timings.