Beirut devastated by ammonia nitrate explosion
The world watched on in shock following a devastating explosion in Beirut, caused by 2,700mt of ammonia nitrate last week. In the aftermath of the disaster, the safe storage, handling and use of the chemical commonly used as fertiliser, has been brought into question once again. More scrutiny is expected by the industry, with some expecting that AN could be banned for use in agriculture by further countries, however markets are yet to reflect this sentiment.
RCF’s urea tender draws to a close
India’s latest urea tender by RCF closed on Monday, receiving offers totalling 1.29mn tonnes. At time of writing, the L1 offer levels are yet to be published, but initial reports suggest $289 cfr WC and $292 cfr EC (up $30+ on MMTC’s tender less than 2 weeks ago). If confirmed, the west coast cfr value would net back to a fob AG value of around $277-8. However, the futures market didn’t wait for confirmation, trading higher on the bullish sentiment Monday. The September expiry continues to see the most liquidity, trading multiple times up to $285 for AG urea, from a high last week of $280. September Brazil urea also traded higher on the sentiment up to $291. Physical sales are yet to reflect the moves on paper, with physical players waiting for the full picture from India before making their next moves.
USITC pushes ahead with countervailing duty investigations
The US International Trade Commission ruled on Friday that they will continue their investigations into countervailing duties in the US phosphate market. The Nola DAP futures market reacted positively to the news, with over 15kt trading on Friday afternoon across the September, October and November expiries. We’re still seeing some backwardation in the market, but across the curve values were firmer on the ITC announcement.