U.S. Gulf/Tampa: Tampa business for April was concluded at $580/mt CFR, up some $120/mt – or 26 percent – from the March level of $460/mt CFR. While sources, citing higher international prices, were expecting a boost, some said the extent of the increase was a surprise. Sources said there were unconfirmed reports of outages in Trinidad that may have weighed in as well.
April NYMEX Henry Hub rolled off the board March 27 at $4.584/mmBtu, up from March 20’s $4.369/mmBtu. May closed March 27 at $4.538/mmBtu.
Eastern Cornbelt: The fieldwork pace was picking up rapidly in parts of the Eastern Cornbelt. As fertilizer demand accelerated, sources were already reporting supply issues due to delays in receiving rail and barge shipments of replacement tons.
Spot fertilizer prices in the Eastern Cornbelt remained firm, particularly for anhydrous ammonia. Sources quoted the regional ammonia market in a broad range at $625-$665/st FOB, depending on location and time of the week, with the higher numbers reported as the week advanced. New sales were confirmed in Illinois on March 27 at the $650/st FOB level on a spot basis, up a full $60/st from the previous week, with supplies described as short.
Western Cornbelt: Temperatures climbed to the 50s and 60s in central Iowa in late March, and sources reported limited field activities starting in the state. In central Missouri, however, temperatures in the mid-70s sparked a heavy fieldwork pace last week. “Things have been nuts around here,” said one source early in the week.
Sources said the pressing issue for fertilizer demand continues to be limited availability and ongoing delays in receiving replacement tons. “From rail to barges, everything is delayed, and in a lot of cases it just will not make it in time,” said one contact. “It is truly a mess.”
Sources quoted a broad range for ammonia in the region, with reports of outages at some locations and firming prices at others. The low end of the regional market remained at $525-$545/st FOB in Nebraska, depending on location, with the upper end reported at a firm $600/st FOB Palmyra, Mo. The market out of Iowa terminals was reported in the $550-$580/st FOB range in late March.
California: The anhydrous ammonia market was unchanged at $630-$635/st DEL in California, though sources said an increase may be in the works in the near term. Aqua ammonia remained at the $172/st FOB level in the state.
Northern California received some much-needed precipitation last week, with reports of nearly an inch of rainfall in the valleys and up to two feet of snow in the Sierra Nevada.
Unfortunately, the moisture will do little to alleviate long-term drought conditions in the state. As of March 24, snowpack in the Sierra was just 24 percent of normal. The U.S. Drought Monitor showed most of California experiencing extreme to exceptional drought at mid-month, with drought conditions on the southern edge of the state rated as moderate to severe.
The Santa Clara Water District announced last week that it would cut its treated drinking water supplies by 20 percent for the rest of the year to at least seven cities. The agency also told farmers, golf courses, and rural residents within that district that no water will be available this year from creeks and public pipelines.
The announcement comes one month after state officials reported that water districts would receive no water this year from the California State Water Project, a series of dams and canals that deliver water through the Sacramento/San Joaquin River Delta to farms and cities from the Bay area south to San Diego. This is the first time in the project’s 54-year history that such drastic cuts have been enforced, state news reports said.