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Fertilizer Market Report – August 28, 2024
Global View of Fertilizer Affordability
In this week’s fertilizer report: Global View of Fertilizer Affordability from Argus Media, CAD Takes Flight After Powell’s Jackson Hole Speech, Canadian Rail Decision is a Win for Companies, Union Leader Says, Last Week’s North American Urea and Phosphate Action, and Industry Tidbits.
News of the Week
Global View of Fertilizer Affordability
Once again, great insight into global fertilizer affordability from Argus Media.
“Fertilizers have become less affordable in August, this as the global purchasing index fell below the affordability threshold in August as crop prices weakened seasonally – especially for soybeans – while phosphate fertilizers rose in the month due to tight DAP supply. The Argus Nutrient affordability index was calculated at 0.98 points in August, the lowest level in 20 months.”
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CAD Takes Flight After Powell’s Jackson Hole Speech
“After gaining 4 cents in less than a month against the US Dollar, the Canadian dollar is now trading at its highest level since March of this year, and the Loonie might have more room to spread its wings. Over the last month and a half, what began as a trickle of softer-than-expected US economic reports has turned into a flood, significantly souring the outlook for the US economy. Fed Chair Powell acknowledged this during his speech in Jackson Hole, Wyoming, on Friday, stating that the Fed does “not seek or welcome further cooling in labor market conditions.” His comments sparked an eruption of joy in the markets, but most importantly for currency markets, they resulted in the US Dollar Index seeing its largest daily decline in nine months.”
Canadian Rail Decision Is a Win for Companies, Union Leader Says
“MONTREAL, Aug 25 (Reuters) – A decision obliging more than 9,000 Canadian rail workers to stay on the job is a win for the railways and could impact bargaining in other federally regulated sectors like aviation, the head of a Canadian rail workers’ union told Reuters.
Paul Boucher, president of the Teamsters Canada Rail Conference, also said the union would work with other labour groups as it mounts a legal challenge to a Saturday decision that halted work stoppages at the country’s two largest railways and imposed arbitration.”
Canadian rail decision is a win for companies, union leader says
North America Urea Last Week
According to Green Markets, urea prices in Western Canada were flat WoW closing the week at C$640 -$645/mt. Urea movement is stagnant in Western Canada as farmers have started harvest, yields are questionable in certain areas and commodity prices are down.
Last week, NOLA urea prices were down to a range US$303-$313/st from a range of US$305-$317/st the previous week.
According to Direct Hedge, this week started with urea Nola spreads of US$305/st bid and US$315/st offer for August and US$305/st bid and US$310/st offer for September. October was quoted at US$300/st bid and US$305/st offer. Q4 is US$295/st bid and US$305/st offer. All of these were weaker WoW.
North America Phosphate Last Week
According to Green Markets, the latest delivered Western Canada MAP price was flat WoW in a range of C$1,080 – $1,085/mt . MAP supply is still very tight in North America.
MAP NOLA was up on the high end to a range of US$635 – $640/st WoW from US$635/st the previous week.
Industry Tidbits
