U.S. Gulf/Tampa: Sources last week said it was too early for February business at Tampa. International price ideas continue to weaken, adding to speculation that another drop at Tampa might be in the works.
News of new spot business at NOLA remained elusive, suggesting that a Tampa equivalent for NOLA might be a more appropriate number for this market, absent any fresh trades.
February NYMEX natural gas closed Jan. 14 at $2.139/mmBtu, down from Jan. 7’s $2.382/mmBtu.
Eastern Cornbelt: Sources continued to describe the ammonia market as “slow and quiet” in the Eastern Cornbelt last week, with fill tons quoted at $440-$460/st FOB in Illinois and Indiana. Prepay was trading at a $10/st premium to fill.
Western Cornbelt: Sources continued to report minimal fertilizer sales and weak markets. “Lots of people are holding out for the bottom,” said one contact. “Everyone is in a wait-and-see attitude.”
The ammonia market remained at $405-$425/st FOB terminals in western Iowa, with the lower numbers for fill tons and the upper end for spring prepay. Ammonia pricing out of Nebraska terminals was quoted at $415/st FOB for fill and $425/st FOB for prepay, while the market FOB terminals in central and eastern Iowa remained at $445/st FOB for fill and $465/st FOB for spring prepay.
Missouri sources tagged the ammonia market at $400-$435/st DEL from southern production points, with the Palmyra market quoted at $440-$450/st FOB for fill and $455-$465/st FOB for prepay.
Southern Plains: Anhydrous ammonia fill tons in the Southern Plains were reportedly being offered as low as $325-$345/st FOB out of regional production points on a spot basis, while dealer pricing at Kansas pipeline terminals was pegged at the $400/st FOB level last week.
Fertilizer activity remained sidelined in the region last week, with spot markets continuing to soften. “Reports from traders are that activity is very slow,” said one contact. “Year-end buying interest from the farm was conservative, with some activity but not near what we normally see.”
South Central: The anhydrous ammonia market was quoted at $405-$435/st FOB for fill and/or prepay tons in the South Central region, with the low at Memphis, Tenn., and the upper end FOB Henderson, Ky.
The year-end buying pace in the region was also described as very slow. “We could just as well have been closed,” said one source. “With all the negative environment out there, no one is ready to buy.” With the start of spring application just 30-45 days away, however, some sources expressed optimism that the regional markets “should find some liquidity soon.”
California: Calamco announced a drop in ammonia postings last week. Anhydrous ammonia is now referenced at $570/st DEL in California, down $25/st from the previous list price, while aqua ammonia has dropped to $157/st FOB, down from $163/st FOB. The company’s AN-20 price remains unchanged at $310/st DEL in California.
Black Sea: Prices have begun to stabilize in the low $270s/mt FOB. European demand is solid but not exciting, said one source. North African demand is also surpassing what local producers can supply, so companies are looking at Yuzhnyy to fill their tanks.
Baltic: Producers are claiming the same price as Yuzhnyy, but sources said the most likely prices are a few dollars less. One trader said buyers would seriously push back against any effort to raise prices at a time when all fertilizer-related markets are falling. The estimated price from Baltic ports to Europe is about $5/mt off the Yuzhnyy price.