Ammonia Prices Threaten Rebound, Potash Retreats
Supplies are at five-year highs for this time of year.
Bryce Knorr
Published: Jul 17, 2009
The summer fertilizer market remains one of the most crucial for farmers to watch, with changes looming on the landscape. While international ammonia prices moved higher this week, there were more indications potash costs finally will be headed lower.
Anhydrous out of the Black Sea rose for the second straight week, adding another $12.50 a ton as new demand surfaces. Prices are up $25 in July to $188, though the Gulf is steady again at $163.25, suggesting a fair farmgate range of $385 to $390, according to Farm Futures forecasting model. Forward whole contracts for September at the Gulf were also steady at $200, or a farmgate price of $405.
Higher ammonia prices should boost margins for fertilizer companies, because natural gas remains cheap.
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