U.S. Gulf/Tampa: The industry continues to wait for a final conclusion of Tampa prices for July. Most expect prices to be up, though not necessarily as high as recent spot business of $710/mt.
In the meantime, another barge transaction was reported for NOLA, this time at $655/st FOB.
Correction: The Tampa price for the issue dated June 18 should have read $625-$710/mt.
Eastern Cornbelt: The anhydrous ammonia market was quoted at $700-$730/st FOB regional terminals, depending on location and time of delivery.
Another week of high heat and humidity, coupled with limited rainfall, continued to expand drought conditions in the Eastern Cornbelt. Crop quality was deteriorating rapidly in the region as a result.
Western Cornbelt: The anhydrous ammonia market was flat at $625-$660/st FOB regional terminals, with the low in Nebraska.
Heat, humidity, and expanding drought continued to take a toll on corn, soybeans, and cotton in the Western Cornbelt last week.
Northern Plains: The anhydrous ammonia market in the region was quoted at $660-$700/st FOB for both prompt or summer fill tons, depending on location and supplier. Delivered ammonia in North Dakota was down from last report at $710-$720/st.
Powerful storms brought heavy rains and strong winds to parts of Minnesota and South Dakota early in the week. As of June 17, crop conditions in the region were still described in very favorable terms. “Most areas are in very good shape,” said one North Dakota source last week.
Great Lakes: Great Lakes regional sources quoted the anhydrous ammonia market at $700-$745/st FOB for fill tons, with the low reported in Wisconsin and the upper end in the Michigan market. No prompt demand was reported for anhydrous in the region last week.
Heavy rains and powerful thunderstorms hit northern and west-central Wisconsin at midweek, while high heat and humidity blanketed southern Wisconsin and much of Michigan. Sources reported dry crops in southern Wisconsin. “Spring and early summer demand is over,” said one source in that location. Another Wisconsin source reported that crop conditions in his trade area would deteriorate quickly if rain didn’t come soon. It has been “very dry, with way too much wind and high temperatures,” he said.
Middle East: Mitsui bought 15,000 mt from Sabic at a reported $644/mt FOB. This amount pushes up the public price by almost $25/mt FOB.
Sources say Mitsui needed the tons to make good on its commitments to a major buyer. Speculation is that the tons will be going to the East Coast of India. Traders dismissed the idea that the ammonia would be going to Southeast Asia.
Even though the sale to an Indian buyer may force a loss on Mitsui, going to East Asia would be an even bigger loss.
The cargo is set for delivery the end of this month. The promptness of the deal points to Mitsui moving quickly to cover contracted tons, said one trader.
For Sabic, the deal came at the right time.
The Arab producers have been saying for some time that the ammonia price was higher than the public posted price. This deal not only moves the price up, it puts it beyond where producers were talking just a week ago.
The higher price will help move the price Indian buyers pay under their formula-based contracts.
Even as the Arab Gulf is looking up, sources report the latest bit of business from Egypt looks like a softening market.
Reportedly, the last done deal out of Egypt was at $560/mt FOB. That price is significantly lower than the Yuzhnyy price, which many use as a measure of the Egyptian price.
Black Sea: “Muddled” an