23 February 2012 16:49 [Source: ICIS news]
HOUSTON (ICIS)--The contract price of benchmark US Tampa ammonia for all March shipments decreased 15% from February, a source close to the negotiations said on Thursday.
The settlement between Yara and its customers brings the contract to $400/tonne (€304/tonne) CFR (cost and freight), down $72/tonne from the $472/tonne February price.
A significant determinant of the March settlement was an early-February spot purchase by Mosaic of 25,000 tonnes of ammonia from Sabic for early March delivery at a price of $400/tonne CFR Tampa.
Several other spot sales with equivalents of $400/tonne CFR Tampa were subsequently reported by market sources.
Another factor in the decrease in the price of ammonia in the US Gulf is the lower price in Yuzhny, Ukraine, where recent sales have occurred in the area of $330/tonne FOB (free on board), a market source said.
Market traders said the price of ammonia is expected to rebound in April as demand for fertilizers will surge during the spring planting season.
US farmers are projected to plant anywhere from 92m-96m acres of corn in 2012, possibly surpassing the 93m-acre record set in 2007.
($1 = €0.76)
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