VINACHEM

Canadian fertilizer major Nutrien has released its potash refill program for US terminals with the producer taking orders for both third and fourth quarter deliveries.

The reference price is at $370/short ton FOB (free on board) for Midwest terminals with Nutrien  taking orders at this reference price levels for Q3 delivery until 28 July, with the reference price increasing by $30/short ton for delivery in Q4.

Immediate market reaction was fairly muted with industry participation overall light to close the week following a domestic conference concluding but Nutrien said their initial response to the program has been constructive.

The company said in a statement that they are finding customers being optimistic about a strong fall application season, which appears supported by continued strength in agricultural fundamentals.

There had been some doubt expressed in recent days that fill offerings would come forward so quickly with the producer earlier this week announcing it had further reduced production at its potash mines due to labour disputes at Canadian ports which had caused the loss of Canpotex export capacity.

For now the strike activity appears to have reached a resolution as it was announced that the International Longshore and Warehouse Union (ILWU) Canada has reached a new tentative deal with the BC Maritime Employers Association (BCMEA).

The new deal was scheduled to be voted on by the union on Friday to decide whether it should be submitted to members for ratification. A further work stoppage could come if they reject this latest offer.

While there was not a renewed barge price presented for the New Orleans (Nola) market there were participants seeing current Nola values around $320-330/short ton FOB on Friday.

Sentiment is that interest in fresh volumes should increase over the final days of July as the refill prices will be viewed as favourable for restocking efforts, especially in ratio to the current US crop prices.  – ICIS –