U.S. Gulf/Tampa: February Tampa business was concluded at $415/mt CFR by major players, matching recent spot business by Mosaic. Once Mosaic struck the low-price deal, most figured Yara would have to at least match it.
February NYMEX gas rolled off the board at $5.557/mmBtu, up significantly from Jan. 23’s $4.730/mmBtu, and even more from the February 2012 close of $3.226/mmBtu. While most cited extremely cold weather for the uptick, others speculated that traders were short and had to quickly cover commitments. March closed Jan. 30 at $5.011/mmBtu.
Eastern Cornbelt: The anhydrous ammonia market remained at $530-$540/st FOB in the Eastern Cornbelt. Effective Jan. 31, CF’s forward pricing for ammonia included $530/st FOB Albany, Ill., for tons shipped from March through June.
The last days of January brought another round of bitterly cold weather to the Eastern Cornbelt. Northern Illinois began the week with subzero lows and wind chills in the negative double-digits.
Wind chill warnings were also issued for northern and central Indiana early in the week, and blowing snow prompted numerous travel advisories for the state. By Jan. 28, temperatures in Columbus, Ohio, had fallen to minus 10, with wind chills down to minus 18 in Dayton, Ohio. One Ohio source reported at midweek that temperatures had dropped to minus 26 in his location.
Western Cornbelt: Frigid weather hit parts of the Western Cornbelt again last week, along with gusty winds and snowfall. Local news reports talked of whiteout conditions in northern and eastern Iowa early in the week, with wind chills dropping to minus 20-25 degrees.
Subzero lows were also reported in parts of Missouri early last week, and more winter storm warnings were in effect for western Nebraska as the week advanced.
Ammonia pricing was quoted at $490-$530/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.
Effective Jan. 31, CF’s forward pricing for ammonia included $530/st FOB Palmyra, Mo., for tons shipped from March through June.
Northern Plains: Delivered anhydrous ammonia continued to be quoted in the $585-$595/st range in North Dakota. The Twin Cities ammonia market, however, had reportedly slipped to $490-$505/st FOB, depending on time of delivery.
Another icy blast hit the Northern Plains during the last days of January, sending wind chills down to the minus 40s last week in both Minnesota and North Dakota.
With winter in full force in the region, spring fieldwork seemed a long ways off. Sources did, however, report some interest in booking spring fertilizer tons, at both the retail and wholesale levels.
Eastern Canada: The anhydrous ammonia market for customers in Eastern Canada had reportedly firmed to $670-$680/mt FOB Courtright, Ont., for prompt tons, up roughly $50-$80/mt from fall pricing levels.
Wind chill warnings were in effect for much of Eastern Canada last week, with lows falling to minus 34 C in southern Ontario at midweek. The cold was accompanied by gusty winds and snowfall in some areas.
Temperatures in Halifax barely reached the minus 8 C degree mark on Jan. 28, with scattered flurries and blowing snow reported throughout Nova Scotia. In Newfoundland, heavy rains early in the week were followed by much colder temperatures, resulting in multiple highway closures.
Despite the cold weather, sources reported an uptick in commitments for spring fertilizer tons, along with firming prices. “The market has been strong of late, with a lot of interest in nitrogens,” said one source. “Supply is tightening up as more retailers come to the ta