Last week, the US domestic market (SPY) was broadly negative for ammonia prices. Companies that sell ammonia include Terra Nitrogen (TNH), CF Industries Holdings (CF), CVR Partners (UAN), and Agrium (AGU).
Ammonia prices for Tampa CFR (cost and freight) remained at $315 per metric ton. Prices for the US Gulf NOLA (New Orleans) CFR also stayed at $320 per metric ton. In contrast, prices in the Southern Plains fell 10% to $390 per short ton compared to a week ago. Prices inched down 4% in the Corn Belt during the week ended June 10 to $432 per metric ton (or $477 per short ton) compared to $453 a week ago.
Ammonia in the Black Sea region inched down from the previous week to $270 per metric ton FOB (free on board) from $280 per metric ton. In Western Europe, ammonia prices stood at $329 per metric ton CFR, which was a 3% decline compared to a week ago. Prices in the Middle East stood at $325 per metric ton FOB, down from $330 per metric ton FOB compared to the previous week.
Ammonia is a feedstock to other nitrogen fertilizers such as urea and UAN (urea ammonium nitrate). Thus, ammonia prices also act as a precursor to prices for other nitrogen fertilizers. Next, we’ll cover how urea prices moved last week.