London, 30 June 2021
A new price published by Argus for urea barge shipments in New Orleans is bringing much needed transparency to this key hub, which serves as an index for prices paid by US farmers, industrial consumers and the fertilizer futures market.
New Orleans has a key role in fertilizer markets as a highly liquid trading point, and trade prices are referenced widely. Millions of tonnes are imported annually from the Middle East, north Africa and the Baltic, before being loaded onto river barges for shipment up the Mississippi river. These barges are traded and re-traded on a 'fob Nola' basis, and the prices have become a key reference for regional and global markets in fertilizer, diesel exhaust fluid and other industrial sectors.
Argus has worked with the industry to develop this new weekly price to improve transparency and provide a more robust index. The price is a volume-weighted average of deals done and includes only trades for release within the calendar month. The price reflects real market activity and will represent actual trades done each week.
The new price can be used as a benchmark to underpin futures contract settlement as well as an index for imported cargoes, industrial pricing and domestic supply contracts. It is published weekly in the Argus Nitrogen service.
Argus Media chairman and chief executive Adrian Binks said: “We are delighted to have worked with the industry to develop this new price for the world’s largest fertilizer market. The volume-weighted average approach is something we have used in other commodity markets. It gives market participants confidence that the assessment reflects real activity. Argus always assesses prices appropriately to suit market conditions.”
More Argus resources on nitrogen
- Argus Nitrogen price reporting service
- Other Argus nitrogen services
- Argus AdBlue® and DEF Monitor service
- Fertilizer Focus magazine
- Additional complimentary content on fertilizers
About Argus Media
Argus is an independent media organisation with almost 1,100 staff. It is headquartered in London and has 26 offices in the world’s principal commodity trading and production centres. Argus produces price assessments and analysis of international energy and other commodity markets and offers bespoke consulting services and industry-leading conferences.
Companies in 140 countries around the world use Argus data to index physical trade and as benchmarks in financial derivative markets as well as for analysis and planning purposes.
Argus was founded in 1970 and is a privately held UK-registered company. It is owned by employee shareholders, global growth equity firm General Atlantic and Hg, the specialist software and technology services investor.
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