Falling worldwide demand continued to pressure fertilizer prices this week, as farmers have all but finished buying decisions with the start of a rushed planting season. Summer forward prices suggested the market is hardly done dropping, either.
Ammonia made domestically in the Southwest is being sold for around $290 a ton, the same prices quoted out of the Gulf. That translates into a farmgate price of around $445 to $500 a ton, according to Farm Futures pricing models for producers able to secure fresh supplies.
While wholesale prices for anhydrous were steady in the latest week at seaports, forward prices posted for July indicate the market is ready to repeat its typical seasonal break into summer on the spot market. Quotes for July out of the Gulf are at least $100 under the current market, bid at $163.25 and offered at $209. That translates into a farmgate around $385 to $425.
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