Central Florida: Demand for prompt phosphates remained slight in the twilight of the spring season, though rail-loaded DAP was still said to be available from producers and resellers alike. Price erosion was thought to be minimal, with the market supported by steady prices in the NOLA market.
The Central Florida phosphate market was called $430-$440/st FOB for the week, unchanged from previous levels. MAP, thought by sources to be essentially unavailable, continued to be quoted at a $20/st FOB premium to DAP.
U.S. Gulf: Demand for prompt phosphate barges was light, sources said, and most of the industry focus had shifted forward to summer business. Mosaic’s posted price for prompt DAP was listed at $445/st FOB, though no sales were reported at that level as of June 26.
Sources put prompt Chinese material at $421-$422/st FOB, while domestic and Moroccan DAP traded in a $430-$440/st FOB range. MAP was quoted $20-$25/st FOB higher than DAP.
Sources were divided on the direction of the market. Some insisted on continued strength while others predicted tumbling prices, but most agreed that a considerable supply of imported product was en route for August/September delivery.
Some sources feared that such a large and sudden influx of supply would far outstrip demand and gut prices, possibly dropping levels as low as the $400s/st FOB. Buyers were said to be growing hesitant, and nervous sellers were “letting offers trickle down.”
For the week at hand, sources put September and October barges in the mid-$420s/st FOB, with July offers quoted at $430-$435/st FOB. Paper trading for September/October was called $419-$421/st FOB, and the MAP premium was put at $20-$25/st FOB for all timelines.
For many, truck sales made up the lion’s share of phosphate commerce conducted for the week, and though business wasn’t necessarily brisk, small quantities were moving.
Warehouse operators put prices at $475-$490/st FOB for prompt sales on the lower and mid-river markets, while $485-$510/st FOB was heard at upriver points. DAP sold from terminals for September and October shipment was quoted $10/st FOB below current levels.
Prices on the NOLA barge market were called $430-$440/st FOB based on most recent sales, unchanged from previous levels. MAP was put at a $20-$25/st FOB premium to DAP.
USDA placed 74 percent of the national corn crop in the good or excellent categories last week. The U.S. soybean crop was 95 percent planted and 90 percent emerged, with 72 percent of the crop rated as good or excellent. The winter wheat harvest was pegged at 33 percent complete nationally by June 22, with 30 percent of the crop rated as good or excellent and 44 percent falling in the poor or very poor categories.
As of 4 p.m. on June 26, corn and wheat prices on the futures market were down compared with the previous week, but soybeans were on the rise.
Corn contracts for July 2014 clocked in at $4.4275/bushel, down from the previous week’s $4.505/bushel. September 2014 corn had slipped to $4.39/bushel from the prior week’s $4.4425/bushel, while corn for December 2014 was $4.4325/bushel, down from $4.475/bushel the week before.
The July 2014 soybean price rose to $14.37/bushel from $14.2075/bushel a week earlier, while soybeans for August 2014 were put at $13.8175/bushel, up from the previous week’s $13.69/bushel. Soybeans for November 2014 were posted at $12.4425/bushel, an increase from $12.2725/bushel a week earlier.
Wheat for July 2014 was $5.8225/bushel, down from the previous week’s $5.935/bushel. September 2014 wheat had slipped to $5.8475/bushel from the prior week’s $6.025/bushel, while contracts for July 2015 wheat were listed at $6.4525/bushel, down from $6.5975/bushel the week before.