27 September 2013 20:30 [Source: ICIS news]
HOUSTON (ICIS)--The benchmark Tampa ammonia contract has settled up to $490/tonne (€363/tonne) CFR (cost and freight) for October loadings, market sources said on Friday.
The settlement between Oslo-headquarter fertilizer giant Yara and its customers was agreed at a $5/tonne increase to the September price level of $485/tonne CFR.
The increase is in line with the recent sentiment that US buyers have been targeting a price of below $500/tonne CFR for October shipments and that the recently announced Yuzhny price of $450/tonne FOB (free on board) for late September was too high, primarily in light of weaker demand within the market.
A producer source said on Friday that the settlement would likely be viewed as indicating there is renewed stability in the US ammonia market.
The market has been hampered by a delay in refilling activities, but the sentiment expressed this week was that producers still anticipate a robust fall application period in light of the potentially large corn harvest forecasted for North America.
($1 = €0.74)
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