U.S. Gulf/Tampa: Major Tampa players were at a stalemate most of last week on a price for September. Sellers sought an increase, citing higher Black Sea numbers, while buyers wanted a rollover, citing weak DAP prices. Late in the week, sellers won out with a $15/mt increase over August’s $470/mt, to $485/mt CFR.
While natural gas prices remained relatively low last week, they were still a good bit higher than numbers for this time last year. September NYMEX natural gas went off the board Aug. 28 at $3.567/mmBtu, versus the year-ago close of $2.634/mmBtu. The October close on Aug. 29 was $3.618/mmBtu, versus the year-ago $2.685/mmBtu.
Eastern Cornbelt: Intense heat and humidity settled over Illinois in late August, prompting heat advisories and school closures. The heat wave also blanketed parts of Indiana and Ohio, generating thunderstorms and heavy rains in northeastern Ohio early in the week.
Corn and soybeans responded to the heat and humidity with rapid growth, and sources reported very favorable crop conditions last week. Sources reported some early harvest activity on silage and seed corn last week, and topdress applications were underway on wheat stubble and hay ground, although fertilizer movement was limited in the region.
“We typically do not have any grower interest in August,” said one contact. “It seems the industry is concerned about lack of grower interest, but that usually does not happen till later anyway.”
There were minimal changes to the spot fertilizer markets last week, although slightly lower ammonia prices were reported. Sources pegged the dealer market at $530-$540/st FOB, with the low in Illinois and the upper end of the range FOB Huntington, Ind.
Western Cornbelt: After a relatively cool summer, the Western Cornbelt was hit with high heat and humidity in late August, resulting in numerous heat advisories for Iowa and Nebraska.
Iowa sources reported growing concerns about drought in late August. The Aug. 27 Drought Monitor showed the entire state enveloped in some stage of drought, with moderate to severe drought conditions covering the southern half of Iowa and the northern half of Missouri.
Low water levels were also starting to become a factor for barge navigation on the Mississippi River. Local reports said barges and tows were backed up between Clinton and Camanche, Iowa, at midweek because of shallow water, and dredging operations were underway.
Spot fertilizer pricing remained flat to weak in the region, although there was little new business to test the markets.
The anhydrous ammonia market was quoted at $505-$545/st FOB in the region, down slightly from last report, with the low reported in Nebraska. Nebraska sources also reported fall prepay offers in the $520-$525/st FOB range last week.
Northern Plains: A heat wave settled over the Northern Plains in late August, driving temperatures in the Dakotas and Minnesota up into the 90s and triple digits. Excessive heat advisories were in place as a result, and sources also talked of spotty hail damage from strong thunderstorms in parts of Minnesota.
The hot weather sped up the grain harvest, with combines rolling on spring wheat, barley, and oats in the region.
Sources reported little in the way of fertilizer activity as growers focused on the small grains harvest.
The anhydrous ammonia market in late August was quoted at $555/st FOB in Minnesota, while delivered ammonia in North Dakota was reported at the $570/st level for fill and $590/st for prepay.
Great Lakes: Hot, humid weather was reported in the Great Lakes region in late August, which made for great corn growing conditions. Crops were also aided by recent rains in both states.
Michigan sources tal