U.S. Gulf: Nothing new was reported last week, although players are gearing up for October Tampa business. Sources say the 20 percent gas curtailment in Trinidad and higher international prices may serve to boost Tampa prices – or at least cause them to roll over.
July U.S. imports were off 7 percent, to 572,750 st from the year-ago 614,828 st, according to the U.S. Department of Commerce.
Sources noted that NYMEX natural gas prices were up a tad this past week, to more than $3.00/mmBtu. They had not been at this level for the current month since August.
Eastern Cornbelt: The anhydrous ammonia market in the Eastern Cornbelt was quoted at $780-$790/st FOB regional terminals for prompt tons, with the low in Illinois and the upper end out of Indiana terminals.
Spring prepay ammonia was reportedly being offered in the $810-$815/st FOB range in the region, with the low again reported in Illinois and the upper end in Indiana.
Recent rains continued to improve the region’s drought outlook in mid-September, and favorable harvest weather allowed growers to move quickly on corn and get a good start on soybeans.
Western Cornbelt: The prompt ammonia market was tagged at $740-$760/st FOB in the Western Cornbelt region, up slightly from last report. Out of production points in Oklahoma and Kansas, the ammonia market had firmed as well, to $700/st FOB for prompt tons.
The moisture from Hurricane Isaac provided needed drought relief to some parts of the region, but other areas remained parched in mid-September. According to the Sept. 11 U.S. Drought Monitor, virtually all of Nebraska was now labeled as an exceptional drought area. Most of Missouri, by contrast, had transitioned to severe drought, while drought conditions in Iowa remained severe to extreme last week.
Northern Plains: Anhydrous ammonia pricing in the Northern Plains region was up from last report. Sources tagged the prompt market at $780-$800/st FOB in the region, with delivered tons pegged at $810-$825/st in the Dakotas, depending on location and supplier.
South Dakota remained one of the nation’s hard-hit drought areas in mid-September. The southern South Dakota cities of Sturgis, Winner, and Sioux Falls all posted record dry summers, with June-August rainfall totals of three inches or less at all three locations.
Most of North Dakota was rated as moderately to severely dry last week. Drought conditions in Minnesota had expanded as well, with 83.5 percent of the state now rated as abnormally dry. In southern Minnesota, drought conditions ranged from severe to extreme.
Great Lakes: The ammonia market in the Great Lakes region had reportedly firmed to $780-$800/st FOB, depending on location, with reports of spring prepay offers as high as $835/st FOB. A Michigan source quoted the prompt ammonia market at $790/st FOB Huntington, Ind.
Beautiful weather in the region in mid-September allowed growers to gear up for an earlier-than-normal harvest, but the summer drought has impacted yields significantly in both states. In Michigan, the southern counties were hardest hit by drought this year, while the central area of the state was described by one source as a “garden spot,” with corn growers there expecting 200 bushels/acre yields.
Black Sea: When Mitsui bought tons at $630/mt FOB last month, industry watchers were wondering if that price would set a tone for additional increases or if it was a one-off anomaly.
Deals struck last week for October tons at $645/mt FOB answered that question. Sources report that two buyers settled deals totaling 114,000 mt for next month at the new level.
The price moves Yuzhnyy up to where the math says it should have been based on the September T