Posted 10/22/2010 19:07 (#1403625 - in reply to #1402695) Subject: Re: hedging nitrogen cost?
central illinois
Domestic nat as futures are not a good hedge for ammonia and are a worse hedge for 28%. On the margin ammonia prices are set by imported ammonia which is produced by nat gas in locations such as Trinidad, Nigeria, and Russia. Nat gas in those locations is considerably cheaper (half price or less) than domestic gas.
hedging nitrogen cost?
