U.S. Gulf/Tampa: Nothing new was reported in the market last week. Industry players were still awaiting word on how much less ammonia Mosaic would need in light of its decision to cut phosphate production (see pg. 1 story). Prior to that announcement, sources said price ideas were still strong and Tampa prices might go up for November.
October NYMEX natural gas rolled off the board Sept. 26 at $3.984/mmBtu. November NYMEX gas settled Oct. 2 at $3.932/mmBtu.
Eastern Cornbelt: The anhydrous ammonia market was steady at $655-$670/st FOB in the Eastern Cornbelt, depending on location.
Western Cornbelt: Anhydrous ammonia was steady at $630-$660/st FOB regional terminals in the Western Cornbelt, with the low in Nebraska and the upper numbers in Iowa and Missouri. Delivered ammonia remained in the $670-$690/st range in Missouri, depending on point of origin.
California: Sources reported minimal movement in California, but prices were firming for ammonia. Effective Sept. 27, Calamco raised its ammonia postings to $750/st DEL for anhydrous and $203/st FOB for aqua. Those levels represent a $95/st increase for anhydrous and a $24/st increase for aqua ammonia.
Pacific Northwest: The ammonia market was quoted at $675-$695/st DEL in the Pacific Northwest, up $10/st from last report, with the low for rail and the upper end for truck-DEL product.
Aqua ammonia market remained at $169-$175/st FOB in the region.
Western Canada: The anhydrous ammonia market remained at $755-$800/mt DEL in Western Canada, depending on location. Higher postings were announced late in the week, however, with reference levels moving to $782-$827/mt DEL in the region.
Cargill has reportedly told customers it will no longer sell anhydrous ammonia from its Manitoba retail locations after the spring 2015 planting season. Sources said the decision was driven by the increased difficulty of finding carriers to transport the hazardous product, and also by diminishing demand as growers turn to liquid nitrogen as an alternative. Cargill’s Manitoba retail locations are at Altona, Morris, Elm Creek, Elva, and Dauphin.
India: FACT awarded its Oct. 1 tender to CIFC with Iranian material at $602/mt CFR.
The tender called for a total of 15,000 mt to be delivered in two lots of 7,500 mt each. The first shipment is to be delivered October 28-November 1, the second lot November 11-15. Delivery will be to the FACT facility at Kochi.
The price marks a continued upward trend in ammonia prices.
Middle East: Sources say using the FACT tender results to estimate a new Arab Gulf price means the price would be about $550/mt FOB. However, because the material is Iranian, industry watchers are saying a discount in prices has to be considered.
Prices from the Arab side of the Gulf are holding firm in the upper $590s/mt FOB. Sources report if anyone asks, the producers say the price is $620/mt FOB.
Arab material remains tight. Sources say the producers all claim they are fully booked.
Sources report material flowing out of Algeria is product originally meant for urea production. The stand-alone ammonia line keeps having problems. Traders say the end result is that there are no shortages of ammonia coming from Algeria as long as the urea lines remain down.
Koch is reportedly shopping around for material. Sources say rumors of inquiries range from Algeria to the Baltics.
Black Sea: Ukrainian product remains non-existent. Sources say OPZ announced late last week that they were shutting down for October due to the lack of natural gas.
Prices out of the Baltic are pegged at $605/mt FOB ba