U.S. Gulf/Tampa: Yara concluded new Tampa business for July at $690/mt CFR last week, up from June’s $625/mt. In the meantime, Transammonia concluded business at $710/mt.
Meanwhile, the NOLA barge market continues to be called $655/mt FOB.
Eastern Cornbelt: The anhydrous ammonia market remained at a nominal $700-$730/st FOB in the region, with reports of fall prepay offers at the $735/st FOB level in the Illinois market on a spot basis.
Highs in the 90s and triple digits were reported throughout the Eastern Cornbelt region last week. A fire danger warning was issued on June 28 for a large swath of central Indiana, and heat advisories and fire weather watches were also posted for southern and western Ohio as the week advanced.
A southern Illinois source said temperatures were in the high 90s in his location at midweek, and the 10-day precipitation outlook held only a 10 percent chance for rain. He said crops were “cooking” in his area, and corn is in the middle of pollination. Added another source, “Things could get real dismal in a big hurry” if conditions remain hot and dry in the region.
As of June 26, drought conditions in Indiana ranged from severe to extreme, with the latter category reported in northern and southwestern areas of the state. Most of Illinois was in moderate to severe drought, though the southern tip of the state had transitioned to extreme drought late in June.
Crop quality continued to decline in the region. As of June 24, only 27-37 percent of the Indiana and Illinois corn crops were rated as good or excellent, compared with 51 percent in Ohio. Some 36 percent of Indiana’s corn was already in the poor or very poor categories last week, compared with 15-22 percent in Ohio and Indiana.
As for soybeans, 8-15 percent of the regional crop was blooming by June 24, with good or excellent ratings assigned to 40 percent of the acreage in Ohio, 35 percent in Illinois, and just 24 percent in Indiana. “We will be good for a few more days, but rain will be needed in the next week,” said one Ohio source, commenting on crop quality in his location.
Western Cornbelt: The anhydrous ammonia market was flat at $625-$660/st FOB Western Cornbelt terminals.
Intense heat and minimal rainfall continued to bake crops in the Western Cornbelt. “Hot and dry does not get close to it,” said one Missouri contact, who reported highs ranging from 105-108 degrees in his location as the week advanced. At least 17 record highs were reported in western Nebraska in late June, while residents of eastern Nebraska and Iowa saw heat index readings climb to 105 degrees or warmer at midweek.
Moderate drought to abnormally dry conditions were reported in central and eastern Iowa as of June 26, while drought conditions in central western Nebraska ranged from moderate to severe. Nearly all Missouri was in either moderate or severe drought, although extreme drought was reported in the southeastern corner of the state.
One Iowa source said crops in his location looked great last week, but quality will begin to drop rapidly if conditions remain dry. “If we were to get a slow, steady rain this week, we’d have 200 bushel corn guaranteed,” he said. “But we won’t get that rain, and as a result yields could start dropping 50-75 bushels pretty fast.” In southern Missouri, crops were already showing signs of significant drought and heat stress last week.
Good or excellent ratings were assigned to 60-68 percent of the corn acreage in Iowa and Missouri last week, compared with just 34 percent in Missouri. Soybean conditions in Missouri were worse, with just 26 percent of the crop rated as good or excellent as of June 24, compared with 57 percent in Nebraska and 63 pe