U.S. Gulf/Tampa: It is about time for ammonia business to be concluded for September. While some sources predicted a decision could come any minute, others pointed out that there is still a week to run in August.
Sellers may not be in too much of a hurry to make a deal, however, as Yuzhnyy moved up this week.
September NYMEX natural gas closed Aug. 22 at $3.545/mmBtu, up from Aug. 15’s $3.419/mmBtu.
Eastern Cornbelt: Heat and humidity were reported in parts of the Eastern Cornbelt last week, but summer weather patterns have so far been dominated by cooler-than-normal conditions. Several sources said this has benefited crop quality while slowing crop development in many areas.
USDA’s weekly crop report appeared to bear that out last week. Although corn maturation remained as much as 20 percentage points behind the five-year average in Indiana, USDA continued to rate fully 76 percent of the acreage as good or excellent last week, compared with 82 percent in Ohio and 64 percent in Illinois.
With little buying activity to test the markets, sources reported no changes to spot fertilizer prices in the Eastern Cornbelt.
Anhydrous ammonia pricing remained at $540-$560/st FOB in Illinois, with the top of the regional range quoted at $570/st FOB in Indiana and Ohio on a spot basis.
Western Cornbelt: Cool weather continued to ease drought pressure on crops in Iowa, Nebraska, and northern Missouri, even though drought conditions were expanding in those locations. In parts of southern Missouri, by contrast, recent heavy rains have stressed some crops.
Iowa’s corn was just 24 percent in the dough by Aug. 18, well behind the five-year average of 60 percent. USDA rated 47-48 percent of the corn and soybeans in Iowa as good or excellent last week, compared with 65-72 percent in Nebraska. Missouri’s corn and soybeans were 47-49 percent good or excellent, a drop of 7-8 percentage points from the prior week.
Sources reported minimal changes to the regional fertilizer markets last week, and business was seasonally quiet.
Sources continued to report the anhydrous ammonia market at $510-$525/st FOB in Nebraska, $525-$540/st FOB in Iowa, and up to $550/st FOB in the Missouri market.
California: Anhydrous ammonia remained at $695-$705/st DEL in California. Effective Aug. 1, Agrium’s anhydrous ammonia postings dropped to $695/st truck-DEL in Central California, and $705/st truck-DEL in Northern California. Those prices reflect a $65-$70/st drop from Agrium’s July 1 ammonia postings in the state.
The aqua ammonia market was steady at $186/st FOB in California.
Exceptional crop conditions were reported in California in mid-August, even though seasonal drought continued to fuel wildfires. As of mid-August, numerous wildfires were burning in northern, central, and southern California.
Pacific Northwest: The anhydrous ammonia market remained at $630-$680/st DEL in the Pacific Northwest, depending on location, with the low end for railed tons and the upper numbers for truck-delivered material.
Aqua ammonia was steady as well at $165/st FOB Kennewick and Central Ferry, Wash.
Wildfires continued to plague parts of Idaho, Oregon, Washington, and Montana in mid-August, and red flag warnings were in place in all three states last week due to dry, windy conditions.
The dry weather accelerated the development of small grains in the region, and harvest was well underway for spring wheat and barley crops. Sources reported generally favorable crop conditions in areas not affected by hail damage.
Western Canada: Hot weather spurred rapid crop development in Saskatchewan and Manitoba in mid-August, which was needed in many are