U.S. Gulf/Tampa: The Tampa prices for August rolled over from July’s $520/mt CFR. Sources said supply and demand appear to be in balance on the global market, which is called quiet overall.
August NYMEX settled July 24 at $3.847/mmBtu, down from July 17’s $3.954/mmBtu. Gas watchers attributed the dive in prices to unseasonably cool temperatures across much of the nation this summer. Some speculated that nitrogen producers might use this soft stretch to lock in forward prices.
Eastern Cornbelt: The anhydrous ammonia market was quoted at $560-$590/st FOB in the Eastern Cornbelt, with the low for fill tons out of Illinois terminals and the upper end out of Indiana shipping points. Sources also talked of fall prepay offers at the $580/st FOB level in Illinois on a spot basis.
Sources continued to report favorable weather and excellent crop conditions in the Eastern Cornbelt. As of July 20, 75-81 percent of the corn and 69-77 percent of the soybeans were rated as good or excellent in the region.
Western Cornbelt: Sources reported excellent crop conditions and nearly ideal growing weather across the Western Cornbelt last week, with mild, dry weather expected to continue in Iowa.
USDA assigned good or excellent ratings to fully 86 percent of the Missouri corn crop last week, along with 75-76 percent of the acreage in Iowa and Nebraska. The regional soybean crop was 73-78 percent good or excellent, with 65 percent of Missouri’s rice crop and 57 percent of the cotton acres in the state falling in those two categories as well.
Anhydrous ammonia was steady at $540-$570/st FOB for summer fill or fall prepay in the region, depending on location, with delivered prompt tons pegged at the $570/st level in Missouri from southern production points.
Southern Plains: The anhydrous ammonia market was quoted at $500-$530/st FOB for prompt tons in the Southern Plains, with the low out of regional production points and the upper end out of pipeline terminals in Kansas.
After unseasonably cool weather across the Southern Plains at mid-month, summer heat was scheduled to return to most areas in late July.
The Southern Plains region remained locked in varying degrees of drought last week, with extreme to exceptional drought conditions reported in parts of southeastern Colorado, western Kansas, western Oklahoma, northern Texas, and along New Mexico’s western and northeastern edges.
South Central: The anhydrous ammonia market was pegged at $575-$580/st FOB in the South Central region, with the low reported FOB Memphis, Tenn.
USDA gave good or excellent ratings to 70-79 percent of the regional cotton crop last week, along with 75-78 percent of the corn in Kentucky and Tennessee. Cotton rated as good or excellent totaled fully 91 percent of the Louisiana crop, compared with 71 percent in Mississippi and 67 percent in Arkansas.
Rice conditions varied in the South Central region, with good or excellent ratings assigned to just 53 percent of the Texas crop, 64 percent in Arkansas, 80 percent in Louisiana, and 88 percent in Mississippi.
Black Sea: The quietness of the market is reflected in the lack of any serious bids or offers being made in the area. Sources say there have been some quiet inquiries from Turkey, but only for late August deliveries.
Some industry watchers were expecting Turkish interest to boost the price over the $450/mt FOB mark. Instead, the netback on these bids appear to be holding the price in the $440s/mt FOB.
Middle East: Despite an extension on a global permission to purchase and ship Iranian ammonia, sources say banks remain nervous about backing any deals.
Industry sources