Central Florida: Available DAP and MAP quantities were said to be restricted in Central Florida last week, continuing a recent trend of both limited supply and depressed demand.
“Even if you wanted it, you couldn’t get it,” one source said, though a small number of DAP truck sales were found at $400/st FOB, and sources pointed to $440/st FOB as the next level to be tested. Corn planting in Florida could begin as soon as early February in areas with lighter soils, so market activity in the region was expected to pick up soon.
Active weather patterns in the eastern U.S. brought snow, rain, and ice in early January, with locally heavy rainfall reported in areas of the Southeast. Areas of moderate drought in the Northeast diminished slightly, though patches remained in southeast New York, eastern Massachusetts, New Hampshire, and Maine. Abnormally dry conditions continued to be reported in south-central Florida, though the affected area was shrinking.
Though deals were scarce, the DAP range in Central Florida rose to $400-$410/st FOB based on offers and sales, up from the previous week’s range of $365-$375/st FOB. Central Florida MAP was expected to command a $20/st FOB premium over DAP.
U.S. Gulf: The price of NOLA DAP exploded last week. Trades of $385/st FOB kicked off the action at the week’s outset, but quickly escalated to as high as $435/st FOB by Wednesday. Late-week trading was said to have hit $442/st FOB.
Sources speculated that the rise in prices was led by a high volume of paper trades. While spot deals occurred, actual trading was thinner than expected. Prices moved so fast that each barge sold commanded as much as $5/st FOB over the one before, one source said.
The high volatility had a downside, however, as terminal customers suffered sticker shock from the run-up and mostly refrained from buying. Many traders found pricing terminal stock difficult or impossible, and at least one company closed its terminals for business until the market settled down. Those that stayed open put new terminal DAP prices generally in the range of $440-$460/st, depending on location.
Upper Mississippi River traffic was limited at Thebes, Ill., as rock removal continued, and minor delays on the lower Mississippi were expected due to high water conditions. Towing restrictions on the Illinois River were in place thanks to icy conditions, and ice on the Ohio River was expected to slow transit times.
The 4 p.m. Jan. 16 snapshot of the futures market showed corn and soybean prices on the rise, but wheat prices were down. March 2014 corn contracts were $4.28/bushel, up from the previous week’s $4.12/bushel, and May 2014 corn was $4.355/bushel, up from $4.2025/bushel in the last reporting period. December 2014 corn was also pointed north at $4.5225/bushel, ahead of the previous week’s price of $4.4125/bushel.
March 2014 soybeans were $13.15/bushel, up from the previous week’s $12.7375/bushel. The May 2014 soybean price clocked in at $12.9625/bushel, up from the prior week’s $12.55/bushel, while the November 2014 soybean contract traded at $11.2225/bushel, up from $11.01/bushel the previous week.
Prices were down for both March 2014 and May 2014 wheat contracts, which came in at $5.7275/bushel and $5.7975/bushel respectively. Those prices at the last reporting period were $5.8425/bushel for March 2014, and $5.895/bushel for May 2014.
The swift rise in NOLA DAP barge prices led to a wide range of $385-$442/st FOB for the week based on confirmed sales. The previous range was $385-$390/st FOB. MAP prices were expected to carry a $15-$20/st FOB premium over DAP, though no actual sales were confirmed.
Eastern Cornbelt: The DAP market was quoted in a broad range at $440-$460/st FOB regional warehouses in the Eastern C