U.S. Gulf/Tampa: Nothing new was reported in the Tampa market over the holidays, as a price rollover at the $450/mt CFR mark was achieved before Christmas for January.
January NYMEX natural gas rolled off the board Dec. 27 at $4.407/mmBtu. February settled Jan. 2 at $4.321/mmBtu. The higher numbers have been driven by colder weather, according to sources.
Eastern Cornbelt: Sources reported some interest in spring prepay during the final days of 2013. Sources said prepay ammonia orders were being placed in the $530-$550/st FOB range out of regional terminals last week, with the low reported in Illinois on a spot basis.
A winter storm brought snowfall and cold temperatures to the Eastern Cornbelt last week, with up to 9 inches of accumulation reported in parts of northern Illinois by Jan. 2.
Snowfall totals in Indiana ranged from 2-6 inches by that date, with the heaviest accumulation reported in the northern counties. Ohio sources reported 5-7 inches of fresh snow in central and northern areas of the state during the first days of 2014.
The snowfall also brought cold temperatures. Lows in the single digits were reported in northern Illinois on Dec. 30, with wind chills dropping to minus 17 degrees in some parts of the state. Sub-zero wind chills were also reported in Ohio in early 2014, with even colder weather expected during the following week.
Western Cornbelt: Sources reported some year-end fertilizer buying taking place in the Western Cornbelt last week, though several sources reported a rather tepid pace as growers remained undecided about 2014 planting intentions and uncommitted on fertilizer purchases.
Much of that uncertainty can be attributed to weak commodity prices, but sources also noted lingering drought conditions in the region. The U.S. Drought Monitor reported that all of Nebraska remained in some form of drought in late December, ranging from abnormally dry conditions in the state’s eastern counties to severe to extreme drought in western Nebraska.
Moderate to severe drought also persisted in southern Iowa at the end of the year. In Missouri, however, drought had been erased in the southern half of the state by late December, with only abnormally dry to moderate drought conditions remaining in the northern counties.
The anhydrous ammonia market was steady at $510-$520/st FOB in Nebraska and Iowa and $530/st FOB Palmyra, Mo., with spring prepay offers reportedly circulating at a $10/st premium to the prompt market.
California: The anhydrous ammonia market was unchanged at $630-$635/st DEL in California. Aqua ammonia remained at $172/st FOB in the state.
A stubbornly dry December has put much of California into the record books, with many locations in the state registering 2013 as the driest year on record.
Yearly rainfall totals as of last week stood at only 3.8 inches in San Jose, compared with 14 inches on average; 3.39 inches in Oakland, compared with an average of 22.8 inches; and 3.6 inches in downtown Los Angeles, compared with 14.91 inches on average. In addition, the northern Sierra Nevada had reportedly received barely 10 percent of its average December snowfall as of early last week.
As a result, some communities in the state began enforcing water rationing measures in December, and a state task force has been assembled to consider further actions. The U.S. Drought Monitor in late December reported that 94.25 percent of California is experiencing some level of drought, with extreme drought covering most of the Central Valley farmland.
Sources reported minimal action on the fertilizer front last week, with few sales to test the markets and pricing described as flat. “Some major corporate farms are starting to put out their spring bids, which should provide some referenc