News 
 National Rural News 
 Grains and Cropping 
 General 
 Anhydrous gas prices soar on international markets 

Anhydrous gas prices soar on international markets

12/08/2008 6:29:00 AM
Fertiliser prices have soared again in the latest week on international markets, with anhydrous ammonia now quoted above $US700 out of the key Black Sea market.

That's an increase of more than $US100 a ton over the previous week.

With prices up more than $US200/t over the past month, farmers seem in the United States seem assured of having to pay $US1000/t or more to obtain supplies for next season.

Dealers in the US Midwest reportedly were quoting above $1000/t for immediate deliveries to on-farm storage tanks, with pre-paid quotes hitting $US1300/t.

Traders were watching to see if there was resistance to the sky-high market, especially with grain prices down sharply during the same time period.

While ammonia prices continue to soar, values for natural gas, the primary feedstock for nitrogen based fertilisers, are dropping sharply along with the rest of the energy complex.

Natural gas futures in the US broke through support at $US9 this week, and appear headed to a test of $US8 if they can't find footing soon.

This week's storage report showed stocks increasing another 56 billion cubic feet, a little below trade estimates.

Inventories are tighter than last year at this time, but in the middle of the range for the build season over the past five years.

The tropical storm striking the Texas coast this week didn't do serious harm to platforms in the Gulf, and forecasts for mild temperatures for much of the eastern US over the next two weeks should keep demand for air conditioning in check, limiting the need to start up excess power generation that's typically fired with natural gas.

Print
Increase Text Size
Decrease Text Size


Comments


No comments yet. Be the first to comment below.

Post A Comment


Screen name  *
Email address  *
Remember me?
Comment  *
We invite and encourage our readers to post comments. Comments are moderated and will appear as soon as our editor has approved them. When posting comments you agree to be bound by our Terms and Conditions.
Fertiliser prices continue to soar.
Fertiliser prices continue to soar.

Q: Do you support the creation of a 'guest worker' scheme bringing in Pacific Islanders to counter Australian agriculture's labour shortages?

Yes
(69.1%)

No
(25%)

Undecided
(5.9%)

Total Votes: 508
Poll Date: 10/08/2008

21/11/2008 | AWI's new board can only succeed in old battles by fighting in new ways.
QCL Subscriptions
 
QCL Rate Card
 
Horse Deals Australia
 
Rural Bookshop
 
QCL - Mail Order Cataloge
 SEND...
 SAVE...
 SHARE...