Central Florida:
Central Florida DAP trucks continued to be priced at $530/st FOB, steady from the prior week. Sources continued to quote truck-loaded MAP at $545-$560/st FOB Central Florida.
U.S. Gulf:
Frigid temperatures, low trading volumes, and tempered expectations for an early spring planting season combined to soften NOLA barge phosphate pricing for the week, sources said.
DAP barges were reported setting a $520/st FOB low on Feb. 12, a rollover from the week-ago floor, while trades quoted up to $528/st FOB represented a decline from $540/st FOB posted previously. Bid-ask levels for nearby loading were typically quoted in the $520-$530/st FOB range on Feb. 18.
DAP barges loading in April were reportedly offered for as low as $520/st FOB, while asking prices for domestic tons loading in April-May were quoted at $525/st FOB.
Nearby MAP values tracked at a $562.50/st FOB high, falling from the week-ago $595/st FOB, while most market watchers described the bottom of the range at $555/st FOB, rising from $551/st FOB at last report. Most put March bid-ask levels at $560-$565/st FOB on Feb. 18.
Due to the extreme temperatures, sources said a number of logistics difficulties hindered operations for the week, including issues with barge loading and navigation shutdowns reported throughout the eastern river system.
The nearby DAP barge market softened to the $520-$528/st FOB range, falling from $520-$540/st FOB one week earlier. MAP barges were called $555-$562.50/st FOB, a change from $551-$595/st FOB reported previously.
U.S. Exports:
Nothing new was reported on the Gulf export market. Last-done included a combined 7,000 mt DAP and MAP cargo selling into a single destination in the northern Latin American markets. Pricing was reported at $530/mt FOB, with loading slated for late March.
Based on recent business, the Gulf phosphate export market continued to be called $530/mt FOB, steady from week-ago levels.
Eastern Cornbelt:
DAP was quoted at $565-$585/st FOB in the Eastern Cornbelt, with the low reported at Cincinnati and reflecting a roughly $10/st decline from the previous week. MAP prices ranged broadly from $610-$650/st FOB in the region, depending on location, with the low again reported at Cincinnati.
Western Cornbelt:
DAP prices were reported at $560-$585/st FOB in the Western Cornbelt, depending on location and time of shipment, with the low reported at St. Louis and reflecting a $5/st drop from last report. DAP pricing at Dubuque, Iowa, remained at $575-$585/st FOB for new business, with the Caruthersville market pegged firmly at the $580/st FOB level.
MAP remained at $625-$650/st FOB in the Western Cornbelt, unchanged from the previous week. The St. Paul market was quoted at $590/st FOB or higher for DAP and $650-$675/st FOB for MAP.
Southern Plains:
DAP pricing in the Southern Plains was quoted at $575-$585/st FOB Catoosa/Inola and Houston. MAP pricing reportedly slipped to $595-$610/st FOB Catoosa/Inola early in the week for spring tons from at least one supplier, but others quoted current MAP offers firmly in the $635-$650/st FOB range as the week progressed.
Truck-DEL offers in central Texas were confirmed at $595/st for DAP and $625/st for MAP at mid-month.
South Central:
Warehouse DAP prices were reported at $570-$580/st FOB terminals in the South Central region, virtually unchanged from the previous week, but up $50-$60/st since late January.
Southeast:
Nutrien’s reference pricing for DAP and MAP at Aurora, N.C., remained firmly at the $550/st FOB level, up from $480/st FOB in late January.
Saudi Arabia:
Sources noted Saudi Arabia phosphate business softening to a wide $425-$515/mt FOB range, with the low based on netbacks for business concluded into India. The market was previously reported in the $510-$530/mt FOB range.
India:
Sources said Ma’aden sold 25,000 mt of DAP to an India buyer at $440/mt CFR for delivery in the first half of March, with an agreement to send another similar cargo for the second half of the month.
The price, confirmed by a number of sources, surprised many because the netback to the Arab Gulf is pegged at $425/mt FOB at a time when Chinese DAP is being sold at $500-$505/mt FOB. The reason the Saudis agreed to such a low price is a mystery to global traders. Some have suggested the two cargoes are part of a larger order that incorporated formula-based pricing.
The bottom line is that DAP is once again moving into India after a long period of buyers refusing to accept ever-rising prices. While this deal does reflect a move up in what India pays for its DAP, it is far below what the Indians would have to pay if the product came from China.
A tender by RCF for 50,000 mt to be divided into two equal shipments, one to an East Coast port and one to a West Coast port, has been extended from Feb. 15 to Feb. 22. Sources said the company did not give a reason for the extension, but some speculated that RCF did not receive any offers by the deadline. One trader noted that there is no Chinese product for export, and Arab suppliers reportedly have no tons to spare for a tender.
National Fertilizers Limited will close a tender on March 12 for 350,000 mt of DAP to be delivered in four lots between May 2021 and January 2022.
If RCF goes through with its tender, sources said the pricing could help set a net benchmark for the many DAP purchases that India needs to make for the upcoming season. However, said one trader, the dearth of material from China at any price could make getting a bargain difficult.
China:
Sources now confirm that the last bit of DAP business earlier this month into Thailand showed a netback to China of $500-$505/mt FOB. Traders are now working with this range when looking at future deals out of the country.
The problem with future deals, however, is the lack of material. Sources said all inquiries for DAP and other phosphates were rebuffed before the country closed for the Lunar New Year holiday. Traders said factories experienced reduced production because of the holiday break and because COVID-19 outbreaks have forced plant closures in some areas. The virus has also made the transportation of product difficult from factory to distribution points.
Brazil:
With much of the Brazil market reportedly shuttered for the week due to Carnival, last-done pricing at Brazil continued to fall in the $570-$600/mt CFR range, steady from the prior report. The market’s most-recent business was quoted at $580-$600/mt CFR, with offers reported at $610/mt CFR.
Sources reported issues unloading vessels due to the seasonal rains. At the same time, the rains are also affecting the distribution of material at Mato Grosso and other inland centers.
Sales at Rondonopolis remain pegged at $670-$700/mt FOB ex-warehouse.The barter rate for 1 mt of MAP remains at 75 bags of corn and 31 bags of soybeans.