U.S. Gulf/Tampa: Most of the focus last week was on the international market and what it would eventually mean for Tampa. Sources reported that PotashCorp bought 25,000 mt on the Elversele from Transammonia at Yuzhnyy at $460/mt FOB for the U.S. Gulf, for delivery to Geismar in mid-May. Sources put freight rates in the mid-$90s/mt, which would take the delivered price up to approximately $555/mt.
As a result of this business, sources say Yara will undoubtedly be looking for a significant boost to its Tampa number for April, which was $470/mt DEL.
Eastern Cornbelt: The anhydrous ammonia market was quoted at $730-$750/st FOB in the region, with the low in Illinois and the upper end out of Indiana terminals.
Sources said preplant demand for ammonia had slowed, but outages continued to be reported at some locations last week. “It’s just as well that there is no great demand at the moment,” said one source.
Corn planting continued at a brisk pace in the Eastern Cornbelt last week. As of April 15, Illinois growers already had 41 percent of the crop in the ground, well ahead of the five-year average of six percent. Elsewhere in the region, corn planting was rated at 24 percent complete in Indiana and 10 percent in Ohio by April 15, also well ahead of the average pace in both states.
Western Cornbelt: The anhydrous ammonia market was quoted at $630-$690/st FOB terminals in the Western Cornbelt, depending on location, with the lower end reported in Nebraska and in western Iowa on a spot basis.
As of April 15, corn planting had progressed to 39 percent complete in Missouri, 5 percent in Iowa, and 4 percent in Nebraska. Missouri’s cotton crop was 4 percent planted by that date, but rice in the state was already 71 percent planted, well ahead of the five-year average of 10 percent by this date. The oat crop in Iowa and Nebraska was 77-87 percent planted by April 15, also ahead of the average pace.
Northern Plains: Minnesota sources quoted the anhydrous ammonia market in a broad range at $650-$730/st FOB last week, depending on the terminal. North Dakota sources quoted delivered ammonia in the $780-$790/st range for “very limited” tons at midweek.
Favorable weather allowed growers to make great strides on spring planting in the Northern Plains region in April, although many areas were sidelined by rains last week. The moisture was welcomed, as much of the region experienced an extraordinarily dry winter.
As of April 15, corn planting had progressed to 7 percent complete in Minnesota, compared with 3-4 percent in the Dakotas. The sugar beet crop was 24 percent planted in Minnesota and 13 percent planted in North Dakota by that date. As for small grains, the spring wheat crop was already 83 percent planted in South Dakota by April 15, compared with 56 percent in Minnesota and 27 percent in North Dakota, and the barley crop was 35 percent planted in Minnesota and 17 percent planted in North Dakota by that date.
Eastern Canada: Eastern Canada sources quoted dealer reference pricing for anhydrous ammonia at the $900/mt mark FOB Courtright, Ontario.
Black Sea: Asian sources confirmed a deal out of Yuzhnyy at $460/mt FOB last week. Sources say Transammonia handled the sale.
The former correlation between the Yuzhnyy and Tampa prices is pretty much broken, say sources. The Yuzhnyy price of $460/mt FOB would translate roughly to $550/mt CFR into Tampa, instead of the current $470/mt CFR.
One trader noted that the industry should expect to see the Tampa price move up in the next couple of months to meet the Black Sea levels. Until then, tonnage out of Yuzhnyy will most likely be heading to places other than the U.S.
Sources ta