U.S. Gulf/Tampa: The Tampa price for October closed late in the week at $640/mt CFR, up $70/mt from September’s $570/mt. Sources had already noted that higher international prices would likely mean a boost for Tampa.
U.S. July ammonia imports were 521,949 st, almost level with the year-ago 523,957 st, according to the U.S. Department of Commerce.
October NYMEX natural gas settled Sept. 18 at $3.910/mmBtu, up from Sept. 11’s $3.823/mmBtu.
Eastern Cornbelt: The ammonia market had reportedly inched up to $655-$670/st FOB in the Eastern Cornbelt, depending on location. Sources pegged the common market out of Illinois terminals at $665-$670/st FOB last week.
Sources remained concerned about available fertilizer supply for the region’s fall application season. “I don’t think the system has been tested yet, although I fully expect problems,” said one contact.
Western Cornbelt: Anhydrous ammonia was quoted at $630-$660/st FOB regional terminals in the Western Cornbelt, with the low in Nebraska and the upper end FOB Palmyra, Mo. Delivered ammonia remained in the $670-$690/st range in Missouri, depending on point of origin.
Northern Plains: Sources pegged the anhydrous ammonia market at $630-$635/st FOB regional terminals in the Northern Plains, with the upper end reported out of the Velva, N.D., market for fall prepay. Delivered ammonia in the North Dakota market was pegged at the $630/st level for fall prepay or fill tons. Agrium’s anhydrous ammonia posting FOB Mankato, Minn., firmed on Aug. 28 to $655/st.
Expected harvest delays in the region, coupled with slow crop maturation, had some sources tempering their expectations for the fall fertilizer season. “Fall looks to be somewhat small depending on how the row crops come off,” said one North Dakota contact. “We could see some fertilizer application, but at this point there’s not too much talk.”
Great Lakes: Anhydrous ammonia pricing in the Great Lakes region had reportedly firmed to $655-$675/st FOB regional terminals, with the low quoted by Michigan sources FOB Huntington, Ind., and the upper end FOB Courtright, Ont. Wisconsin sources pegged the dealer market at the $665/st FOB mark.
Black Sea: Prices are on the move. Sources now say the price is approaching $530/mt FOB and trending upward.
Even as the price moves up, however, sources say overall the area market is quiet. The price increase appears to be related to limited supply rather than additional demand.
Middle East: September has been a month of rapid movement on prices.
The month started off with a deal reported around $550/mt FOB. By the middle of the month, $580/mt FOB was reported. Additional deals at the $580/mt FOB level were reported as Green Markets went to press, with one source even relaying rumors that $600/mt FOB might have been done.
One trader noted that the current Asian price does not support these higher prices. In the past, Mitsui has been willing to pay higher-than-usual prices to ensure its contracts are fulfilled. At first, some in Asia wrote off the initial purchase as a one-off arrangement just to satisfy a contract. The subsequent deals, however, may indicate a longer-term trend for higher prices.
India: FACT called a tender for 120,000 mt of ammonia to be delivered over a six-month period. The tender closes Sept. 22.
Delivery of the material is to be to the FACT Cochin facility. Each cargo cannot be more than 7,500 mt per month because of the limited storage capabilities at the port. The fact that FACT wants about 20,000 mt each month indicates that it may be able to