U.S. Gulf/Tampa: The Tampa and Gulf markets were quiet last week. Sources expect the Tampa price to drop by an estimated $20-$30/mt CFR when new contracts are settled.
The arrival of cold weather across much of the nation pushed December NYMEX natural gas to close Nov. 20 at $4.489/mmBtu, up from Nov. 13’s $3.977/mmBtu.
Eastern Cornbelt: Regional sources continued to lament the dismal fall fertilizer season in the Eastern Cornbelt.
“Fertilizer applications have been at standstill since old man winter moved in,” said one Ohio source. “It has been a very disappointing fall application season so far that has just never materialized. I hope we still have a chance yet after the snow melts to get back at it, or it will put a lot pressure on spring to get everything done.”
The ammonia market was reported at $650-$660/st FOB regional terminals for spot tons, with the low end reported in Illinois. Sources reported “no takers” for spot tonnage, however, with many customers still reportedly pulling fall prepay.
Western Cornbelt: Sources continued to report minimal fall fertilizer work in the Western Cornbelt, with one Missouri contact summing up the fall season in just two words: “Pretty slow.”
The regional ammonia market was steady at $615-$625/st FOB Nebraska terminals, and 640-$650/st FOB in Iowa and Missouri, depending on location. Delivered ammonia in the Missouri market was reported at $640-$670/st from southern production points for the last business, depending on destination and point of origin.
Northern Plains: The early arrival of winter weather cut the fall ammonia season short in the Northern Plains. “Maybe half of the normal tons went down,” said one Dakota contact last week. “Spring will be tough, but with urea prices down, more guys may use dry. Also with corn being down, we may see more beans and then less nitrogen all around.”
Minnesota sources quoted the anhydrous ammonia market at the $630/st FOB level for fall tons. Delivered tons in North Dakota were pegged at the $660/st level for November/December fill, with reference prices quoted as high as $700/st DEL or FOB.
Eastern Canada: Sources reported a firming market for anhydrous ammonia in Eastern Canada. The dealer market was pegged at $830/mt FOB Courtright, Ont., up $15/mt from last report.
Middle East: Reportedly PIC sold 8,000 mt of ammonia to Mitsubishi for $620/mt FOB. Sources say this is a high price to pay for material that is most likely bound for the Far East.
India: Confusing ammonia numbers out of the region have some industry watchers scratching their heads. One report came out of a sale by Mitsui to FACT at $600/mt CFR. At the same time, sources say the landed price in India is closer to $660/mt CFR.
The higher number matches more with the latest reported deal out of PIC by Mitsubishi. One industry watcher suggested, however, that Mitsui may have secured a distressed cargo from Iran to secure the lower price.
The problem, say sources, is that both prices may be correct for their respective ports of entry.
Black Sea: The limited material available from Yuzhnyy has generated some mystery surrounding prices. Sources report that buyers have claimed paying $600/mt FOB and up. Others, however, point to business in Turkey that indicates sub-$600/mt FOB netbacks.
Settling the differences may take some time, said one trader.
Europe: Sources are reporting sellers with Baltic material but no place to sell it.
Long positions are not finding willing buyers, say sources. The lack of movement coul