U.S. Gulf/Tampa: There was nothing new to report in the Tampa market last week. July business had not been reported at press time. Sources reported that Trinidad is expecting significant gas curtailments in July-August, maybe as much as 20-30 percent. This could lead to more pressure on Tampa, or at least prod another rollover.
July NYMEX prices closed June 19 at $4.584/mmBtu, down from the June 12 close of $4.762/mmBtu.
Eastern Cornbelt: The anhydrous ammonia market in the Eastern Cornbelt was transitioning from a prompt pull market to fall prepay.
Illinois sources continued to report sales for prompt June tons at the $650/st FOB level last week, while fall prepay business had reportedly been concluded at the $580/st FOB level out of some Illinois terminals as the week progressed. “If Mother Nature is kind to us, we should have a good fall season,” said one contact.
Mother Nature was not particularly kind to the region last week. Strong thunderstorms moved through central and northern Indiana on June 18-19, producing 60-65 mph winds, large hail, and heavy rainfall. The powerful storm system also pushed into northern and central Ohio, producing up to 2.5 inches of rainfall and golf ball-sized hail in some locations.
The moisture slowed the completion of soybean planting in the region, which had progressed to 91-94 percent complete as of June 15. The combination of planting and sidedress activities has given the spring season a long tail, however, prompting one Ohio source last week to wonder “how many spring seasons” he’d been through this year.
Western Cornbelt: A powerful line of thunderstorms rolled through parts of the Western Cornbelt and Northern Plains regions at midweek, producing torrential rains and at least one tornado in southeastern South Dakota.
Minneapolis, Minn., received more than 6 inches of rain in just 8 hours at midweek, with June 19 registering as the wettest June day in the city’s history. The storm system caused record flooding along parts of the Big Sioux River in South Dakota and western Iowa, and also produced rapid rises on the Missouri and Rock Rivers in Iowa.
The wet month of June continued to reduce drought levels in the Western Cornbelt. Only small patches of severe drought remained in central and southern Nebraska, according to the June 17 U.S. Drought Monitor. Areas of the region that were completely drought-free in mid-June included western Nebraska, eastern Missouri, and virtually all of Iowa.
Anhydrous ammonia remained in a broad range at $570-$645/st FOB in the Western Cornbelt, depending on location and time of delivery, with the low in Nebraska and the high in Missouri.
California: Anhydrous ammonia was unchanged at $720/st DEL in California, with aqua ammonia referenced at the $195/st FOB level in the state.
Drought conditions in California intensified in early June, fueled by reports that the first five months of 2014 were the hottest on record for the state. The June 17 U.S. Drought Monitor showed the northern three-quarters of the state in extreme to exceptional drought, with southern California experiencing severe drought conditions.
Pacific Northwest: Cool, wet weather settled over parts of the Pacific Northwest in mid-June, although severe to extreme drought conditions persisted in areas of southern Idaho and southern Oregon, according to the June 17 U.S. Drought Monitor. Moderate to severe drought was also reported in eastern Washington at mid-month.
Sources quoted the anhydrous ammonia market at $750-$780/st DEL in the Pacific Northwest for new sales, with the low for railed tons and the upper end for truck-DEL material. Reference prices were in the $750-$800/st DEL range, with the up