AMMONIA
AMMONIA
U.S. Gulf/Tampa: The import and NOLA markets were quiet last week. Most of the attention in the ammonia market was overseas or inland U.S. In the Black Sea, buyers were anxiously awaiting news of a drop. And in the inland U.S., sellers appeared determined to keep prices up as the prices of urea and UAN soared.
Natural Gas: The final May closing price, which was recorded April 28, was $11.280/mmBtu. It was reported as the highest contract expiration price since the January 2006 contract.
Correction: The closing NYMEX natural gas price for April should have read in Green Markets as $9.578/mmBtu, not $9.572/mmBtu. This was the April close on March 27, and it first appeared in the issue dated March 31. The May price posted on March 27 was $9.687/mmBtu, not $9.680/mmBtu.
Eastern Cornbelt: The region continued to experience fieldwork delays related to wet conditions, but some planting progress was reported last week. Lots of preplant ammonia reportedly still needs to be applied in Illinois and Indiana.
The spot market for ammonia continued to be quoted at $715-$730/st FOB regional terminals, although postings were higher. One supplier moved its reference levels last week to $755-$760/st FOB terminals in Illinois and Indiana for prompt tons, and there were reports of another offering fall prepay for as high as $815/st FOB. Still another was offering forward contract ammonia for June at $760-$770/st FOB in the region.
Western Cornbelt: The anhydrous ammonia market was tagged at $700-$730/st FOB regional terminals for spot market tons last week, with one supplier referenced at $740/st FOB in Nebraska, $745/st FOB in Iowa, and $750/st FOB in Missouri. Agrium’s April 28 ammonia postings included $700/st FOB Hoag, Neb., and $705/st FOB Early, Garner, and Whiting, Iowa; Mankato, Minn.; and Greenwood, Neb. Agrium’s ammonia postings in the Leal, Beulah, Velva, and Grand Forks sales area in North Dakota firmed on May 1 to $860/st FOB and $880/st DEL.
Southern Plains: The ammonia market was up from last report as well. Sources quoted ammonia pricing in a broad range at $600-$675/st FOB, with the low out of Oklahoma production points and the upper end to dealers FOB Kansas pipeline terminals. One Kansas source said the next big fertilizer push in his territory would be ammonia on the grain sorghum crop.
Agrium’s anhydrous ammonia postings firmed on April 28 to $675/st FOB Clay Center, Kan.; $670/st FOB Conway, Kan.; $665/st FOB Mocane, Okla.; and $645/st FOB Borger, Texas. The company’s delivered postings from the Borger location moved on that date to $670/st in Texas north of Interstate 40, and $675/st in Texas and Oklahoma south of Interstate 40.
South Central: The anhydrous ammonia market was pegged at $610-$660/st FOB regional terminals, with the low for spot tons FOB Memphis and the upper end for fall prepay.
Western U.S.: Agrium’s anhydrous ammonia postings firmed on May 1 to $925/st rail-DEL in Oregon, Washington, and northern Idaho; $945/st truck-DEL in Oregon and Washington east of the Cascades, and in northern Idaho; and $950/st truck-DEL in Montana and northern Wyoming. Agrium’s aqua ammonia postings firmed on May 1 to $236/st FOB Central Ferry and Finley, Wash.
Black Sea: Asian sources report prices quoted by traders as low as $430/mt FOB, but no one could confirm any business done at that level. The problem with nailing down the new lower price levels, said one trader, is that the Ukrainian government has not yet lowered the KIP. The current official lowest price was still at $480/mt FOB, as most of the world got ready to take a long international Labor Day holiday break.