U.S. Gulf/Tampa: At the start of the day, Friday, April 27, there was still no word on new business being concluded for Tampa for May. Major players were reported to still be at odds over prices, and a conclusion could linger until after press time or into the next week.
Much of the focus has been on the recent increase in prices at Yuzhnyy, specifically the prior week’s news that PotashCorp bought 25,000 mt on the Elversele from Transammonia 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 about $555/mt.
As a result of this business, sources said Yara would undoubtedly be looking for a significant boost to its Tampa number for April, which was $470/mt DEL. Some predicted that Yara would not try to make up the difference all in one month, but over two months.
On the one hand, Mosaic, which has just had to agree to pay higher sulfur prices for the second quarter, is likely trying hard to hold the line on ammonia prices. On the other hand, Yara likely noticed that Mosaic has upgraded its projections for phosphate and potash sales for the current quarter, meaning the company could better afford a price increase.
Eastern Cornbelt: Earlier reports of preplant ammonia movement winding down may have been premature, sources reported last week. Although sidedress demand was still a good ten days away, sources reported a number of ammonia terminal outages again last week. One contact said growers are opting to plant more corn instead of soybeans in many areas, so that acreage shift is reportedly giving the preplant ammonia run a long tale this spring.
Sources quoted ammonia pricing at $740-$750/st FOB regional terminals for any available prompt tons, with the low in Illinois and the upper end in the Indiana market. Several locations were reportedly sold out, with others offering only limited tons.
Western Cornbelt: Ammonia continued to move in preplant applications on corn in late April, and tight inventories resulted in firming prices out of Western Cornbelt terminals. Sources quoted the market at $650-$660/st FOB Nebraska terminals for available tons at midweek, while dealer pricing out of some shipping points in the Iowa and Missouri markets had reported firmed to $710-$720/st FOB for limited prompt tons.
Southern Plains: Anhydrous ammonia was reported at $570-$610/st FOB production points in the Southern Plains region, with the low reported FOB Enid, Okla., and the upper end out of Pryor and Verdigris, Okla., for limited tons. Sources pegged the market FOB Kansas pipeline points in the $600-$610/st FOB range last week.
South Central: With prompt tons sold out at both Memphis, Tenn., and Henderson, Ky., sources reported no current prices for anhydrous ammonia out of terminals in the South Central region. Sources said replacement tons are inbound at Memphis, but only to cover prepay orders, so there will be no spot ammonia available out of that market in the near term.