uploads///Ammonia Prices

Why Ammonia Prices in the US Corn Belt Have Picked Up

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Apr. 12 2016, Published 10:50 a.m. ET

Ammonia prices

In the week ended April 8, 2016, ammonia prices at Tampa CFR (cost and freight) continued to move sideways for the 11th straight week. Companies that sell ammonia as a product to the Market (IYM) include Terra Nitrogen (TNH), CF Industries Holdings (CF), CVR Partners (UAN), and PotashCorp (POT).

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North America

During the week ended April 8, the average CFR spot prices for ammonia at Port Tampa Bay remained unchanged from the previous week at $310 per metric ton. Year-over-year, ammonia prices remain significantly depressed in Tampa. They’ve fallen ~56% from $485 per metric ton since the corresponding week last year.

Ammonia prices for the week ending April 8 at US Gulf NOLA (New Orleans) were $315 CFR per metric ton, unchanged from the previous week. Prices at the Corn Belt also remained unchanged at $560 FOB (free on board) per short ton, or $508 per metric ton.

International markets

Moving over to prices in the international market, ammonia at the Black Sea, Ukraine, was $270 per metric ton FOB, a rise of 2% from the previous week. In Western Europe, ammonia prices stood at $330 per metric ton CFR, unchanged from the previous week. Prices in the Middle East stood at $355 per metric ton FOB, also unchanged from the previous week.

Since the beginning of the year, ammonia prices have inched up as much as 32% from a low of $425 per short ton FOB ($385 per metric ton). This means that demand has been picking up. It also supports the Prospective Plantings Report’s increase in corn acreage estimates.

Because most ammonia is converted into urea, we’ll look at urea price trends in more detail in the next part of this series.

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