U.S. Gulf/Tampa: The new price for ammonia delivered to Tampa was set $80/mt higher for June in comparison to May, a jump from $545/mt to $625/mt, which will also have an effect on other Gulf and river ammonia prices.
Eastern Cornbelt: Sources continued to report nitrogen movement for corn sidedressing in the Eastern Cornbelt. Anhydrous ammonia pricing remained at $690-$730/st FOB Illinois terminals for prompt pull, with the upper end of the regional range pegged at the $740/st level out of Indiana terminals.
Western Cornbelt: The anhydrous ammonia market was steady at $640-$690/st FOB regional terminals for prompt tons, with the low quoted out of Nebraska terminals on a spot basis. Sources reported minimal movement to the field in late May.
California: Calamco announced an increase to ammonia pricing in California. Effective May 27, anhydrous ammonia postings will firm $50/st, moving to $705/st truck-DEL from the previous $655/st level. Aqua ammonia postings from the company will firm on that date to $190/st FOB from the previous $178/st FOB level.
Pacific Northwest: Washington sources reported some anhydrous ammonia movement on summer fallow in the northern part of the state. The ammonia market was pegged at $780-$790/st DEL in the region, though the last reference prices were quoted as high as $995-$1,020/st DEL, depending on location.
Western Canada: Sources quoted the anhydrous ammonia market unchanged at $1,209-$1,218/mt DEL in Manitoba, $1,218-$1,227/mt DEL in Saskatchewan, and $1,227-$1,253/mt DEL in Alberta.
Rain settled over much of Western Canada last week, with forecasts calling for most of Saskatchewan, Alberta, and Manitoba to get a steady dose of moisture until the weekend. With seeding nearly complete in most areas, however, and much of the region feeling parched after unseasonably warm and dry weather since March, few were complaining.
Black Sea: As soon as the new Tampa price was announced, Asian traders said the Yuzhnyy equivalent price would be $555-$565/mt FOB. But until news of a small top-off order came around, the public price was stuck in the $460s/mt FOB.
Traders cautioned, however, that using the Tampa price to estimate the Black Sea price is tricky because Tampa is now dominated more by Trinidad material than Yuzhnyy. They added, however, that that should not stop ammonia players from running the numbers just to get a sense of “where the market should be.”
Market watchers pointed to the small 4,000 mt unit sold at $560/mt FOB as evidence that the Black Sea price was moving with the Tampa price. By itself, that small sale might not have been enough to convince many others. On its heels, however, came news of 50,000 mt being sold at the same level.
The consensus is growing that not only is the price centered on $560/mt FOB, but that there is still room for the price to move up even more.
Middle East: Sources report no new spot sales because demand is outstripping supply in the region. Reportedly the Arab producers are doing all they can to fulfill the basics of their contracts with traders and end users.
The lack of spot business means the public price remains in the low $500s/mt FOB. Sources in Asia, however, say that the pricing ideas of the producers are much higher. Even buyers say they expect to see significantly higher prices once India calls and settles a tender.