Tampa July ammonia contract seen lower

18 June 2010 21:25  [Source: ICIS news]

HOUSTON (ICIS news)--The July contract for US benchmark Tampa ammonia under current negotiation was likely to shed $10-20/tonne (€8-16/tonne) from June’s $370/tonne CFR (cost and freight), sources said on Friday.

Buyers negotiating with producer Yara North America were pushing for a reduction as the ammonia market went through a seasonal lull exacerbated by dealers reluctant to order product until demand appears from farmers for autumn application.

Negotiations for the July contract commenced this week with Yara taking a stand for a rollover of $370/tonne, or a slight decrease of $10/tonne, a source said.

But the buy side, represented by Mosaic and CF Industries, was pushing for a plunge to $350/tonne, sources said.

A source close to the negotiations said that while each side could give a little, buyers this month held the slightly stronger position.

A settlement of the July Tampa ammonia contract is expected to be completed early next week, a source said.

($1 = €0.81)

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By: Frank Zaworski
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