U.S. Gulf/Tampa: Yara concluded April business with Mosaic last week at the $470/mt DEL mark, up some $70/mt from the March business.
The industry was watching the business closely to see if it added credence to the $359/mt DEL that Mosaic had bought in late March from a heretofore unheard of Hong Kong-based trader, Zhineng Jiaoyi Ltd. Reportedly, the Chinese company has taken over the FertiNitro export tons that used to be handled by Koch. Sources last week questioned whether the vessel, Brugge Venture, which was to be used for the trade, would make it to Venezuela in time to get the product to Tampa by the end of April.
In light of Yara’s concluding $470/mt within one week of the deal, and other international prices, including the Black Sea and Middle East moving up in the same time frame, the $359/mt does appear to be a questionable or distressed cargo and outside of the conventional market. Indeed, observers last week argued that the $470/mt was low when considering other international prices.
Eastern Cornbelt: A blistering preplant pace for ammonia was resulting in lengthy truck lines at some regional terminals last week, and also contributing to higher prices for prompt tons. One Illinois source said growers in his trade area had easily applied a third of their spring ammonia volumes by early last week. Another source said the heavy preplant run will likely result in significantly less sidedress demand later this spring.
Although some Illinois contacts said spot ammonia tons could still be had early in the week in the $640-$650/st FOB range, the prompt ammonia market had reportedly firmed to the $680/st FOB level or higher out of some locations as the week advanced. CF’s ammonia postings for orders shipped March 28-30 included $680/st FOB Mt Vernon, Ind., and Illinois terminals at Albany, Kingston Mines, Peru, and Seneca; $690/st FOB Cowden, Ill., $695/st FOB Terra Haute, Ind.; and $700/st FOB Huntington, Ind.
Western Cornbelt: The ammonia market was firming in the Western Cornbelt region, and movement was heavy in late March. Several Iowa sources tagged the dealer market commonly at the $625/st FOB mark for prompt tons, with the low end of the range quoted at $610/st FOB Nebraska terminals. One Iowa contact quoted retail ammonia pricing in the $710-$760/st range at midweek.
Although parts of Missouri remained wet last week, other locations reported that fieldwork had kicked into high gear. “Someone turned a switch on this morning,” said one Iowa contact at midweek. “Today it really fired off. All products are running.”
CF’s ammonia postings for orders shipped March 28-30 included $610/st FOB Blair and Fremont, Neb.; $620/st FOB Port Neal and Whiting, Iowa; $630/st FOB Spencer, Iowa; $640/st FOB Garner, Iowa; and $670/st FOB Palmyra, Mo. CF’s postings in the Southern Plains region for the March 28-30 period included $570/st FOB Verdigris and Woodward, Okla., $585/st FOB Conway, Kan., and $590/st FOB Clay Center, Kan.
Northern Plains: North Dakota sources quoted the anhydrous ammonia market at $715-$720/st FOB terminals and $750/st DEL for prompt tons. In Minnesota, the prompt ammonia market was pegged in the $625-$635/st FOB level early in the week, but higher postings were announced at midweek.
CF’s ammonia postings for orders shipped March 28-30 included $675/st FOB Mankato, Minn., $690/st FOB Pine Bend, Minn., $700/st FOB Glenwood, Minn., $725/st FOB Grand Forks, N.D., and $740/st FOB Velva, N.D.
Great Lakes: Anhydrous ammonia pricing was reported at $680-$700/st FOB for prompt tons in the Great Lakes region, with Wisconsin sources talking of long lines at truck terminals. CF’s ammonia postings for orders shipped March 28-30 included $680/st FOB Courtright,