Central Florida: Prices on the Central Florida phosphate market were called $380-$390/st FOB for the week, unchanged from the previous report. MAP was $10/st higher than DAP.
U.S. Gulf: Sources talked of a slow week of trading on the NOLA DAP market. Relatively few barges were reported to have changed hands, but transactions were described as firmer for the week at $330-$345/st FOB.
Some cited thinning prompt import offers for the price increase, but others pointed to a repeating cycle in the market. “This happens every year,” one trader said, describing a large year-end selloff pushing prices lower, leading to a New Year’s rebound.
Firming in the DAP paper market also received credit for pushing the barge price higher. Traders looking to cover their shorts at the end of the year may be finding few willing sellers, one market veteran said, resulting in an approximate $10/st FOB increase in DAP paper for February and March.
“The phosphate market is not that liquid, so when you have all these guys who are long on the market, who are so far out of the money with how far barges have come down this season, they’re just holding on until the price comes up,” one source said. “You basically have one or two (shorts) bidding up the price right now.”
Paper for February and March was called $345-$348/st FOB.
Many market players expressed wariness that the market had not strengthened to the degree indicated by the higher prices. A host of import vessels was still expected in the first quarter, and some speculated that depressed grain prices could conspire to keep barge prices low.
“There’s at least one, and maybe two Moroccan vessels on their way, and the PhosAgro guys are calling like crazy,” said one contact. “There’s still another Chinese vessel rumored, too.”
Most sources put MAP barges even with DAP, although some believed DAP was being offered at a premium. “We’re hearing MAP barges $5/st cheaper than DAP,” said one trader.
The NOLA barge market was quoted in a range of $330-$345/st FOB, up from $325-$345/st FOB at last report. MAP was generally called even with DAP at $330-$345/st FOB, above the previously reported $323-$335/st FOB range.
Eastern Cornbelt: DAP was quoted in a broad range at $380-$405/st FOB in the Eastern Cornbelt, down another $5-$10/st from mid-December pricing levels, depending on location. MAP was $5/st higher than DAP.
The 10-34-0 market remained at $510-$515/st FOB in the Eastern Cornbelt. Agrium’s Jan. 1 phosphoric acid postings for rail-DEL SPA and MGA remained at December pricing levels of $1,090/st of P2O5 in Michigan.
Western Cornbelt: Sources quoted the DAP market in a broad range at $385-$405/st FOB in the Western Cornbelt in late December, depending on location, with the low in Missouri and the upper end in Iowa. Iowa sources said that level reflected a $10/st drop from mid-December pricing levels.
Sources quoted the DAP market FOB Catoosa, Okla., at $365-$380/st FOB in late December, also down $10/st from last report.
MAP continued to trade at a $5/st premium to DAP, where available.
10-34-0 was unchanged at $525-$540/st FOB for the last confirmed business in the Western Cornbelt.
Agrium’s Jan. 1 phosphoric acid postings include $1,050/st of P2O5 for rail-DEL SPA and MGA in Iowa, Missouri, Nebraska, Kansas, Colorado, Minnesota, and Wisconsin, and $1,065/st of P2O5 for rail-DEL tons in the Dakotas, Oklahoma, and Texas. Those levels were unchanged from December postings.
California: Sources continued to quote posted prices for MAP in California at $545/st FOB or DEL from We