U.S. Gulf/Tampa: Players were awaiting news of Tampa business for August, but it was not forthcoming at press time. While some predicted a rollover of the July price of $460/mt CFR due to relatively flat global prices, others argued that the NOLA market was a bit long, which could translate into lower price ideas for Tampa.
The last done business on the NOLA market was reported at $457/st FOB for spot barges, but there were reports last week that new business may have occurred at a much lower $410/st FOB. Some sources indicated that ammonia might be a tad long in the area, with speculation that the urea turnaround time at CF might have prompted excess ammonia.
Others questioned such a decrease, however, saying it was a large drop and it was not shopped around to other buyers.
August NYMEX natural gas closed July 23 at $2.816/mmBtu, down slightly from the July 16 close of $2.854/mmBtu.
Eastern Cornbelt: The ammonia market was steady at $545-$555/st FOB for fill tons and $555-$565/st FOB for fall prepay in the Eastern Cornbelt, with the lower numbers in Illinois and the upper end in the Indiana market.
Sources talked of tows being diverted away from Illinois River ammonia terminals due to high water in recent weeks, with more rain likely over the coming weekend.
Western Cornbelt: The anhydrous ammonia market remained at $505-$535/st FOB in the Western Cornbelt for fill tons shipped in July and August, with the low in Nebraska and the upper end FOB Palmyra, Mo. Fall prepay was reportedly being quoted at a $10/st premium to the fill market.
Southern Plains: Anhydrous ammonia was quoted at $460-$480/st FOB regional production points in the Southern Plains, depending on location, with the low for summer fill shipment in July and August and the upper end for fall prepay. Pricing out of Kansas pipeline terminals was reportedly $30/st higher.
South Central: The anhydrous ammonia market had reportedly slipped to $550/st FOB Henderson, Ky. No activity was reported in Memphis, Tenn., to test the ammonia market at that location.
Black Sea: The Bosporus Strait was closed early last week for about a day, but caused little disruption in delivery schedules.
The stoppage came Wednesday morning when a dry cargo vessel had a rudder malfunction and smashed into a straits-side villa just north of Istanbul. Tugboats moved the stricken vessel to a nearby port for inspection and repairs. The straits were re-opened by the late afternoon.
The event had the potential to cause major disruption in ammonia shipments out of Yuzhnyy, but one trader who watches Black Sea traffic said the ongoing Bosporus Bridge repair work near Istanbul has had a greater impact on schedules. The Bosporus is closed from 5 a.m. until 11 a.m. each day while major repairs take place on the bridge.
Prices out of Yuzhnyy remain stable as the industry settles into the summer doldrums.
Middle East: Sources report that the removal of tons from the global market by the starting of Safco V urea production has so far caused no impact in the market.
One trader noted that it will take a while for the impact to be felt, but it should be a minor blip in the market. He said there is plenty of production that can be ramped up to ensure contracts are met and time schedules kept.
Prices remain stable as demand remains steady.