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This week we take a quick look at the possible influences of the U.S. dollar and WTI crude oil on the nitrogen segment. All four of the nitrogen products in our weekly survey are priced below expected new-crop revenue and should be considered at value levels.
Tuesday’s open in WTI crude oil futures has a story to tell. Crude market bulls were gunning for continued rejection of a two-handle on crude oil, but Tuesday’s market action pressured the front-month crude oil contract below $28.00 per barrel for a short time.
Read about ideas farmers have designed to make their jobs easier
The move higher in crude oil futures last week was based on short covering and on rumors of an OPEC production cut. With the addition of Iranian supplies, OPEC’s output is now at 32.60 million barrels per day, roughly 1 million barrels per day above expected demand.
P&K producers have been playing prevent defense amid struggles in the agricultural sector. Potash remains oversupplied globally, but phosphate producers have been very conservative with their production strategy.
In 2015-16, the attache expects the country to export 26.5 MMT of corn, down from 2014-15.
Meteorologist Gail Martell provides her weather insight.