U.S. Gulf/Tampa: Tampa prices for February dropped to $472/mt DEL, down some $83/mt from January’s $555/st mt DEL.
Sources said the drop was in line with recent erosion in Yuzhnyy. Demand was reported to be off, and unsold product was reportedly on the market. Sources cited the recent cuts in DAP production, as well as caution from some other industrial customers. In addition, sources said fears about the Euro crisis continue to linger. Sellers were hopeful the bottom has been found.
In the meantime, sources continue to speculate that extra tons from the Mosaic Faustina plant and the OCI Beaumont plant should spur new spot trades on the barge market.
Eastern Cornbelt: The anhydrous ammonia market was tagged at $650-$670/st FOB regional terminals, but higher postings were in effect. CF’s ammonia postings for the Jan. 24-27 shipping period included $660/st FOB Kingston Mines, Ill.; $665/st FOB Mt. Vernon, Ind.; $670/st FOB Illinois terminals at Albany, Cowden, Peru, and Seneca; $675/st FOB Terra Haute, Ind.; and $680/st FOB Indiana terminals at Frankfort and Huntington.
Western Cornbelt: Iowa sources said fertilizer movement to the field had slowed due to the arrival of colder temperatures and snowfall at mid-month. Another cold front was taking aim at Nebraska late last week, with freezing rain and snow on tap for northeastern areas of the state by Jan. 27.
The brisk application pace reported earlier in January gave some dealers a jump on their expected spring demand. One Iowa contact estimated that at least 25 percent of his business’s typical spring business has already been completed.
Sources quoted the ammonia market as low as $595-$635/st FOB Western Cornbelt terminals last week. One Iowa contact reported a prompt market of $620/st FOB. CF raised its ammonia postings for the Jan. 24-27 shipping period, however. New postings included $640/st FOB Nebraska terminals at Aurora, Blair, Fremont, Greenwood, and Hastings; $645/st FOB Iowa terminals at Port Neal and Whiting; $660/st FOB Iowa terminals at Garner and Spencer; and $670/st FOB Palmyra, Mo.
In the Southern Plains market, CF’s ammonia postings included $575/st FOB Oklahoma terminals at Verdigris and Woodward, $610/st FOB Conway, Kan., and $620/st FOB Clay Center, Kan.
Northern Plains: Minnesota sources pegged the low end of the prompt ammonia market in the $640-$650/st FOB range at midweek. Delivered ammonia in North Dakota was reported at the $750/st level for spring prepay.
CF’s ammonia postings for the Jan. 24-27 shipping period included $665/st FOB Mankato, Minn., $675/st FOB Pine Bend, Minn., $680/st FOB Glenwood, Minn., and $715/st FOB Velva and Grand Forks, N.D.
Eastern Canada: Ontario sources quoted recent offers for anhydrous ammonia out of Courtright, Ontario, in the $740-$780/mt FOB range, with the low for prompt tons and the upper end for prepay.
Black Sea: As Asia opened for business Friday, sources looked at the impact of the new Tampa price on the Yuzhnyy market.
Earlier estimated netbacks from the Tampa price of $472/mt CFR came in at $370-$380/mt FOB. After the dust settled, however, Asian sources are saying the price is closer to $400-$410/mt FOB.
The price from the area had been on a steady decline. In reaction to the softer prices, OPZ shut down earlier this month to tighten supplies.
One Asian source noted that the ammonia suppliers faced a problem of industrial buyers not needing as many tons as in previous years because of the global economic downturn. Agricultural demand for ammonia, said one trader, has only been affected slightly. The real downturn in demand has come from industrial buyers because of reduced demand for the