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World ammonia prices fell throughout December.

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    World ammonia prices fell throughout December.

    But not in dear old Canada where every one else makes money and farmers pay pay pay!
    Export ammonia tons from Yuzhnyy, FSU, traded at $58 to $590 early and at month's end had plummeted to $460 to $500. Demand from industrial buyers in China and other Far East markets continued soft and some were reportedly planning maintenance shutdowns in January. At mid-month, Mississippi Phosphates Corporation petitioned for bankruptcy protection and stopped production of DAP. There were production issues in several ammonia exporting countries like Algeria, Egypt, Indonesia and Trinidad, but they were not sufficient to overcome the general malaise in demand. OCP, Morocco, was reportedly in talks to purchase U.S. ammonia from Koch and CF Industries in January. This would be the first ammonia export cargo from the U.S. in some time. Late in December, the January price for import ammonia tons settled at $625 per metric ton, down $80 from December. We expect world ammonia prices to run flat to lower in the short term. Domestic ammonia prices at interior terminals traded at around $650 early, dropped to $610 by mid-December and then recovered slightly to $625 at month's end. Fall plowdown demand had been slow early in the month, which pressured prices lower. However, weather conditions improved in late December and demand resurfaced. There were reports of at least modest levels of carryover tons in the Corn Belt, which persisted even after the late improvement in demand. For the short term, we expect domestic ammonia prices to run flat with an undertone of strength.

    I still say a fair price for pre buy would have been .52 delivery included.

    #2
    Natural gas future under $3 this morning.

    Comment


      #3
      World urea prices moved higher through December. Prilled prices at Yuzhnyy traded at $300 to $305 mt early and crossed at $320 to $324 late. In mid-December, India came in with another large tender. In November China exported over 2 million metric tons, of which 1.2 mmt went to India. Also in mid-December, China affirmed a flat tax of $13/mt for 2015. The world market will be reliant on strong domestic demand to limit the volumes that are exported out of China in the first quarter. If export volumes are significant, prices could come down. Yuzhnyy found some spot demand late in the month and this, coupled with good domestic demand, helped to underpin the price and firm late December values. OPZ, FSU, however has decided to restart a second urea line and so more export tons should be available in January. Baltic prices are still quite soft as European interest has thinned due to fairly high stocks in place and South American buyers are showing only limited interest. In the granular market, prices in the Middle East moved up late in the month to $336 mton and producers were refusing to consider any price below $340. Chinese granular prices are much firmer, but they will continue to undercut Middle East prices in the pursuit of sales in central and South America. A combination of continued interest east and west will be needed in the New Year to keep the market firm and possibly slightly stronger and of course, strong Chinese domestic demand will be needed to ensure export availability in the quarter does not depress the market. We look for world urea prices to run flat to slightly higher in the short term. Domestic urea prices firmed through December at NOLA (New Orleans, Louisiana) rising from $307 to $315 per short ton early to $338 to $342 late. Traders indicated most of the cargo on numerous vessels arriving in December (tonnage totaling 650,000t) had been sold. As in the case with ammonia, apparently higher corn and wheat prices are encouraging wholesalers/dealers/farmers to buy in product. We look for domestic urea prices to run flat with an undertone of strength in the short term.

      Comment


        #4
        Got a txt from a local supplier that fert prices are on the rise. Its hard to keep a smile on with all these input prices. Guess if you watch hockey a guy is proud to be Canadian.

        Comment


          #5
          $0.52 Per lb Aint Anywhere Close To Reality, Let Alone Fair!!!!!!! Fckin Thieves!!!!!!!!!!

          Comment

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