28 January 2014 21:49 [Source: ICIS news]
HOUSTON (ICIS)--The benchmark Tampa ammonia contract has been settled at $415/tonne CFR (cost and freight) for February loadings, market sources revealed on Tuesday.
The settlement between Oslo-headquarter fertilizer giant Yara and its customers was agreed at a $35/tonne decrease from the January price level of $450/tonne CFR.
The decline was in line with market expectations following two recent spot purchases by Mosaic at the same pricing and the persistent flat demand that remains within the US ahead of the upcoming spring plantings of crops.
There was some sentiment developing during the extended contract discussions this month that any reduction for February would not be so drastic in light of expectations of the potential upswing in application demand forthcoming.
Yara is understood to have sought a lesser decline in the contract, at a range of $425-430/tonne CFR, but a source said the settlement is an accurate reflection of the current market conditions.
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