Canada's PotashCorp buys ammonia for July Tampa delivery

14 June 2012 20:36  [Source: ICIS news]

HOUSTON (ICIS)--Canada's Potash Corporation of Saskatchewan (PotashCorp) has purchased 23,000 tonnes of ammonia from trader Transammonia for July delivery at a price of $710/tonne (€561/tonne) CFR (cost and freight) Tampa, sources said on Thursday.

The cargo will load in Yuzhny during the first week of July and arrive in Tampa later that month, a source said.

Prior to the reported PotashCorp purchase from Transammonia, recent sales in Yuzhny were at a level of $600/tonne FOB (free on board), which would imply a Tampa price of $675-685/tonne CFR depending on vessel freight rates.

Negotiations for the July contract for Tampa ammonia between Yara and its customers are likely to begin next week. The June contract was established at $625/tonne CFR Tampa.

The sale reported between PotashCorp and Transammonia could move the July Tampa price above the $675-685 CFR range that had been anticipated by some market watchers.

($1 = €0.79)

By: Frank Zaworski
+1 713 525 2653

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