Central Florida: After several weeks of good weather, planting in the Northeast was closer to finishing than in the Midwest, which only recently saw Mother Nature begin to cooperate.
The eastern U.S. and other areas served by Central Florida were up and running at mid-month. Most of the phosphate was coming from warehouses, and trucks were the primary vehicle for moving product to dealer locations. As a result, getting trucks was extremely difficult last week. Unit trains from Florida were not an option this late in the season.
The Central Florida DAP price range was unchanged last week at $465-$520/st FOB, based on posted and asking prices. However, those prices were probably open to negotiation, especially this late in the season.
Mosaic’s list prices were $465/st FOB for rail and $480/st FOB for trucks, while CF Industries was posted at $520/st FOB. PCS Sales was selling at market prices out of Aurora and White Springs.
MAP continued to bring a $20/st premium over DAP.
U.S. Gulf: Planting was underway in much of the Cornbelt last week, and mostly nitrogen fertilizers were being applied. Phosphate has been the ugly stepsister this spring.
Farmers were busy trying to get their crops in the ground while they can, just in case wet or unusually cold weather hits again. Moisture has been plentiful this spring, although the U.S. Drought Monitor continued to show portions of Kansas, Oklahoma, Colorado, and New Mexico with areas of extreme drought.
No problems were reported with flooding or with high water levels on the Mississippi River last week. One of the biggest problems last week was trucks – or a lack of them. With most of the activity reported at inland facilities, trucks were in high demand. Prices were up as a result, and availability was tight. One source said in some cases the sellers had to pay the additional cost of using trucks.
Crop prices for grain products were mixed last week compared to the previous week, with corn and wheat headed down and soybeans going higher. Corn for July was down at $6.415/bushel last week, compared with $6.5025/bushel the previous week. Corn for December 2013 was $5.24/bushel, down from $5.415/bushel a week earlier, while corn for December 2014 was posted at $5.3925/bushel last week, down from $5.50/bushel the previous week.
Soybeans for July were at $14.275/bushel last week, up from $14.0225/bushel a week earlier. Bean prices for November 2013 were up as well, to $12.175/bushel last week from $12.085/bushel the previous week. Soybeans for November 2014 were posted at $12.2225/bushel, also up from $12.185/bushel a week earlier.
Wheat for July 2013 decreased to $6.8775/bushel last week, compared with $7.2375/bushel a week earlier. Wheat for July 2014 was listed at $7.3875/bushel last week, down from $7.70/bushel at last report, while wheat for July 2015 was listed at $7.485/bushel, down from $7.70/bushel a week earlier.
Phosphate continued to be slow again this past week, and transactions were few. PhosChem reached an agreement last week with two buyers in India to deliver 400,000 mt of DAP at current market prices before the end of September. That will help ease production burdens for members Mosaic and PCS during the slow summer months.
Considering the price of export DAP at $470-$475/mt FOB, the deal made NOLA DAP far more attractive because it was cheaper than the product for export.
The NOLA DAP barge price range was quoted at $415-$420/st FOB based on actual transactions, down from the previous week’s $418-$424/st FOB range. The difference in price between domestic and Moroccan product appeared to have disappeared.
MAP barges were in the $430-$450/st FOB NOLA range, with little activity.
Eastern Cornbelt: DAP was steady in the $490-$510/st range FOB region