Urea prices remain in free fall, dropping $80 a ton in the latest week according to trade sources. With prices now reported at $450 a ton in New Orleans, the market is around 40% off highs seen this summer, thanks to decent supplies and slow demand caused by chaotic financial markets.
While supplies at the end of summer were below year-ago levels, they were still above average levels seen in recent years. Plus, many buyers have stepped away from the table, either due to lack of credit or uncertainty over demand after the collapse in grain prices this fall. Indeed, trade in some products appeared to be frozen.
Buyers were reported absent in the ammonia market, further softening prices. Prices are down around $30 a ton internationally in the latest week, and forward contracts for November suggest they could drop another $200 once seasonal demand ends. That translates into a farm gate price of around $800 to $900 a ton.
India reportedly bought DAP for $1,070 a ton out of Tampa, but that includes freight. DAP was down at the Gulf, with buyers at $840, $55 under last week’s offers. December bids are another $15 lower. DAP supplies were reported above levels seen the last two years at the end of summer, but the market appeared controlled by international prices.
The government reports 39% of offshore production out of the Gulf remains shut due to recent storms, but warm fall weather and a broad decline in energy prices coupled to the Wall Street financial crisis pressured natural gas prices. Supplies in storage were up 88 billion cubic feet in the latest week, according to today’s inventory report. Traders expected supplies in storage to be up 86 bcf.
Following out of a US magazine.
Also lots of talk in US that farmers aren't broadcasting this fall because of price. Floater operators are getting layoff notices.
While supplies at the end of summer were below year-ago levels, they were still above average levels seen in recent years. Plus, many buyers have stepped away from the table, either due to lack of credit or uncertainty over demand after the collapse in grain prices this fall. Indeed, trade in some products appeared to be frozen.
Buyers were reported absent in the ammonia market, further softening prices. Prices are down around $30 a ton internationally in the latest week, and forward contracts for November suggest they could drop another $200 once seasonal demand ends. That translates into a farm gate price of around $800 to $900 a ton.
India reportedly bought DAP for $1,070 a ton out of Tampa, but that includes freight. DAP was down at the Gulf, with buyers at $840, $55 under last week’s offers. December bids are another $15 lower. DAP supplies were reported above levels seen the last two years at the end of summer, but the market appeared controlled by international prices.
The government reports 39% of offshore production out of the Gulf remains shut due to recent storms, but warm fall weather and a broad decline in energy prices coupled to the Wall Street financial crisis pressured natural gas prices. Supplies in storage were up 88 billion cubic feet in the latest week, according to today’s inventory report. Traders expected supplies in storage to be up 86 bcf.
Following out of a US magazine.
Also lots of talk in US that farmers aren't broadcasting this fall because of price. Floater operators are getting layoff notices.
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