U.S. Gulf/Tampa: After concluding August business at $470/mt CFR, the Tampa market was quiet last week. Citing the current downward global price climate, however, sources speculated that September pricing would likely be under pressure as well.
While nitrogen prices may be under pressure, domestic producers are at least enjoying another round of lower gas prices, with the August NYMEX prices closing out at $3.459/mmBtu. Sources said the relatively cool, wet summer has kept gas demand low in the utility market.
Eastern Cornbelt: Favorable weather continued to produce favorable crop conditions in the region, and plentiful summer moisture resulted in only a small patch of western Illinois being classified as abnormally dry in late July.
With corn development tracking nearly level or slightly ahead of the five-year average, USDA assigned good or excellent ratings to fully 76-79 percent of the acreage in Indiana and Ohio last week, compared with 62 percent in Illinois. The region’s soybean crop was also developing ahead of normal, with 71-74 percent of the acreage classified as good or excellent.
Sources reported no changes to the spot fertilizer markets, and minimal new business to test the markets.
Ammonia prices in Illinois were steady at $540-$570/st FOB for prompt or fill tons, depending on location, with the Indiana ammonia market roughly $10/st higher.
Western Cornbelt: Parts of the region saw a dramatic swing in temperatures in late July, with several Iowa and Nebraska cities posting record lows on July 28 after experiencing sweltering heat at mid-month.
The cool weather persisted for the remainder of July, giving corn growers a needed reprieve as the crop enters pollination amid expanding drought conditions in both states.
The regional fertilizer markets were generally unchanged from the previous week, with little in the way of new sales reported to test pricing.
Sources continued to report the anhydrous ammonia fill market at $510-$525/st FOB in Nebraska, $525-$540/st FOB in Iowa, and up to $550/st FOB in the Missouri market.
California: California sources continued to report favorable crop conditions, although there were concerns about water availability for the third quarter. Rains in mid-July helped efforts to control several wildfires in Southern California.
Almonds were starting to hit the ground in the Central Valley, and sources said fertilizer applications will begin in the coming weeks in post-harvest applications on nut trees.
Anhydrous ammonia pricing in California was down from last report in the wake of lower Tampa ammonia pricing. Effective July 21, Calamco reposted anhydrous ammonia at $695/st DEL in California, down $70/st from the previous list price.
Calamco’s aqua ammonia posting fell on July 21 to $186/st FOB, down $19/st from the previous price.
Pacific Northwest: With the arrival of August, the wildfire season was in full swing in the Pacific Northwest. Several were raging in southwestern Oregon last week, and multiple wildfires were also being battled in eastern Washington, Idaho, and western Montana.
The dry weather accelerated the region’s winter wheat harvest, which was tracking ahead of schedule. Spring wheat and barley crops were nearly fully headed in the region by late July.
On the fertilizer pricing front, the anhydrous ammonia market was pegged in the $630-$680/st DEL range in the region, depending on location, with the low end for railed tons and the upper numbers for truck-delivered material. Dealer postings remained at $640-$665/st rail-DEL and $660-$690/st truck-DEL in the region.
Aqua ammonia was steady at $165/st FOB Kennewick and Central Ferry, Wash.
Western Canada: