U.S. Gulf/Tampa: While there was nothing new to report on the Tampa and NOLA markets last week, they were among the few nitrogen categories to see no change. As nitrogen prices moved up at most price points, natural gas prices continued to weaken, settling at $2.089/mmBtu April 5 – less than a dime away from cracking the $2.00/mmBtu mark.
Eastern Cornbelt: Fieldwork continued at a frenzied pace in the Eastern Cornbelt in early April, with corn planting underway in some locations. One Illinois source estimated that spring fieldwork was at least two weeks ahead of normal in his location, but many growers are waiting until after Easter to start seeding corn due to the crop insurance date and concerns about the potential for frost damage.
As of April 1, USDA reported that fully 5 percent of the Illinois corn crop was planted, along with 1 percent of the crop in Indiana.
The anhydrous ammonia market had reportedly firmed to $700-$720/st FOB Eastern Cornbelt terminals, with the high in Indiana and the low reported for prompt tons out of Illinois terminals last week. Numerous locations were sold out last week, prompting one incredulous source to ask, “Where in the heck are they putting all this ammonia?”
Western Cornbelt: Although ammonia tons were being pulled for as low as $615/st FOB in Nebraska late the previous week, sources said the regional market had ticked up to $660-$690/st FOB last week, with the low quoted for very limited tons in the Iowa market and the upper end reported in Missouri.
Sources reported five-hour truck lines where tons were available, but many Iowa ammonia terminals were sold out as the week advanced, requiring dealers to cast a broad net. Tons were reportedly being shipped from the Oklahoma market to Iowa, Illinois, and Indiana in early April. “It’s being done if you can find the trucks,” said one source.
Fieldwork and planting activity continued at a “fast and furious” pace in the Western Cornbelt last week, according to one Missouri contact, with some sources estimating that progress is at least three weeks ahead of normal in their location.
Corn planting as of April 1 was 7 percent complete in Missouri and 1 percent complete in Nebraska, USDA reported. A Nebraska source said growers in his trade area will begin corn planting in earnest the week after Easter, but some were already seeding in early April.
Southern Plains: Ammonia movement in the Southern Plains region was winding down. Sources tagged the market at $570-$590/st FOB regional terminals, with delivered tons quoted at $610/st in northern Kansas. Effective April 4, Koch posted anhydrous ammonia at $565/st FOB Enid, Okla., $570/st FOB Dodge City, Kan., $580/st FOB Conway, Kan., and $585/st FOB Clay Center, Kan. On April 5, Koch’s postings at Conway and Clay Center firmed to $590/st FOB.
South Central: Anhydrous ammonia pricing to the dealer had firmed significantly in the South Central region, and suppliers were reportedly allocated at some terminals. The dealer market was pegged at $695-$700/st FOB last week, with the low reported at Memphis and the upper end FOB Henderson, Ky. There were reports that tons were sold out at Henderson as the week advanced.