U.S. Gulf/Tampa: The markets remained quiet last week.
October NYMEX natural gas closed for the month on Sept. 26 at $3.498/mmBtu. November closed Oct. 3 at $3.499/mmBtu.
Eastern Cornbelt: Sources reported slightly higher anhydrous ammonia prices in the Eastern Cornbelt last week.
In Illinois, the dealer market was pegged at $550-$560/st for prompt or prepay tons, with the low reported at East Dubuque. The Henderson, Ky., ammonia market was also quoted at the $550/st FOB level, while pricing out of Indiana terminals was reported at the $560/st FOB level or higher, depending on location.
Dry weather allowed growers to pick up the harvest pace in much of the region in early October. Although USDA’s weekly crop progress report was suspended due to the government shutdown, Illinois sources said roughly 13 percent of the state’s corn was in the bin by the first of the month, with better-than-expected yields reported.
An Indiana source said wet weather slowed activity in his area at midweek, but growers had roughly 25 percent of the soybeans in the bin and were just starting on the corn harvest. He said soybean yields were averaging in the 50s, while early corn yields were coming in at 160-170 bushels/acre.
Although growers and dealers have deferred fall fertilizer purchases, several sources said they continue to expect a brisk fall application season. “I feel like if the weather cooperates, we’ll have an average-to-good fall season,” said one contact. “The income looks like it’ll be there for them.”
Another regional source agreed, noting that movement has picked up on wheat ground and alfalfa, and also in preparation for next spring. “In another 10 days, it’ll be heavy,” he said.
Western Cornbelt: Harvest continued in the Western Cornbelt in early October, although colder, wetter weather was likely in Nebraska and Iowa as the week advanced.
The moisture, while hampering harvest activities, is needed in the region. The Oct. 1 U.S. Drought Monitor showed drought conditions covering nearly the entire state of Iowa, with moderate to severe drought reported throughout most of the state. While moderate to severe drought conditions persisted in Nebraska, the state’s overall drought outlook has improved, with extreme drought limited to only a few patches in the western counties.
The anhydrous ammonia market was up slightly in the Western Cornbelt, with sources quoting the dealer market at $510-$525/st FOB in Nebraska, $525-$540/st FOB in Iowa, and up to $550/st FOB Palmyra, Mo. Several sources said they expect a decent fall ammonia season in the region based on fall prepay orders.
California: The anhydrous ammonia market remained at $630-$635/st DEL in California. Agrium’s Sept. 13 anhydrous ammonia posting in Central California was $630/st truck-DEL, down $65/st from the company’s Aug. 1 posting. The new posting mirrors Calamaco’s Sept. 1 anhydrous posting in California.
The aqua ammonia market remained at $172/st FOB in California.
Heavy rain hit parts of Northern California in late September, while dry weather persisted in Central and Southern California. The conditions made for brisk harvest progress in the Central Valley, where sources said growers were wrapping up the silage corn and almond harvests, and were well underway on pistachios and walnuts.
Optimism is high for the upcoming fertilizer season in California, barring any water issues that might impact key irrigation districts. One source said he’s seen a “tremendous year” for gypsum and soil amendments, which he noted is a good omen for fertilizer usage. “It means growers have some money to spend on inputs,” he said.
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