HOUSTON (ICIS)--The benchmark Tampa ammonia contract has been settled at $460/tonne for March loadings, market sources revealed on Thursday.
The settlement between Oslo-headquarter fertilizer giant Yara and its customers was agreed at a $45/tonne increase from the February price level of $415/tonne CFR (cost and freight).
The increase was in line with market expectations as the current flat demand is anticipated to rebound once plantings commence full scale in the key corn growing states next month.
A source said that buyers and sellers had developed a sentiment over recent weeks that pricing had reached its bottom, but the settlement had been delayed by negotiations over how much of increase was acceptable currently in the domestic market.
Buyers are understood to have sought a lesser decline, to $450/tonne CFR, but a source said the settlement reflects the current market conditions and the anticipated surge in applications and retail purchases forthcoming with the approaching spring planting season.