U.S. Gulf/Tampa: There were no new reports of business in the Tampa market last week, leaving the last done Mosaic’s purchase of one spot cargo at $415/mt CFR, with the bulk of the business for January at the $450/mt CFR level negotiated with Yara earlier.
At press time, there was no word on new Mosaic/Yara business for February, but most sources believe Yara will be under pressure to match or better the $415/mt level.
February NYMEX gas settled Jan. 23 at $4.730/mmBtu, up from Jan. 16’s $4.382/mmBtu. Continued cold weather took the credit for the price increase.
Eastern Cornbelt: Temperatures across the Eastern Cornbelt plunged to subzero lows again last week, and the arctic chill also blanketed much of the Northeast.
Single-digit readings were reported at midweek in northern Illinois, much of Indiana, and central and northern Ohio, with wind chill advisories in effect for a large swath of the region. Wind chills in northern Illinois registered a chilly minus 8 degrees at midweek, but were expected to drop to minus 20-30 degrees in some locations by Jan. 23.
Gusty winds prompted the National Weather Service at midweek to issue a wind chill advisory for the entire state of Indiana, with lows commonly reported at minus 15-20 degrees. Similar wind chill readings were reported in central and northern Ohio, along with 1-2 inches of new snow in northeastern areas of the state. Ohio forecasts called for more frigid weather through the coming weekend.
With little new business to test the market, anhydrous ammonia pricing remained at a nominal $520-$540/st FOB in the region, with the low in Illinois and the upper end in the Indiana market.
Western Cornbelt: Ammonia pricing remained at $480-$520/st FOB regional terminals, with the low reported in Iowa and Nebraska and the upper end in Missouri for spring prepay. Delivered ammonia was pegged in the $490-$500/st range in Missouri for prompt material.
Frigid winter weather once again settled over the Western Cornbelt last week, along with icy winds. “I think the Midwest has had its share of winter this year,” said one Missouri contact.
Temperatures on Jan. 23 dipped to minus 12 degrees in Mason City and minus 5 in Omaha, while wind chills on that date were reported down to minus 24-37 degrees across Iowa and north-central Nebraska.
California: After record-setting drought conditions in December that continued through the first half of January, California Gov. Jerry Brown on Jan. 20 formally declared a drought emergency for the state.
The declaration followed what was the driest year on record for many parts of the state in 2013. The tinder dry conditions, combined with Santa Ana winds and unseasonably hot weather, fanned as many as 150 separate wildfires in the state during the first weeks of 2014. Unfortunately the forecast showed little relief, with the National Weather Service last week talking of more hot, dry weather for the entire southwestern U.S.
Sources said the dry conditions continued to impact fertilizer sales, with growers and dealers delaying purchases due to uncertainties about the upcoming crop year.
The anhydrous ammonia market remained at $630-$635/st DEL in California. Aqua ammonia was steady as well at $172/st FOB in the state.
Pacific Northwest: The anhydrous ammonia market was quoted at $533-$550/st DEL in the Pacific Northwest, down roughly $20-$25/st from last report, with the low for railed tons and the upper end for truck-delivered material.
Drought conditions intensified in the Pacific Northwest in early January. Most of Oregon was experiencing severe drought at mid-month, while nearly all of Washington was in the moderate drought category.
The region’s driest area last