Central Florida:
Local news outlets reported an August phosphoric acid tank failure at Mosaic’s New Wales, Fla., phosphate production facility. Most of the tank’s 1,700-gallon contents were captured by a secondary holding tank.
A third-quarter production shortfall estimated at 300,000 mt – primarily the result of damage sustained to the company’s Faustina and Uncle Sam facilities during Hurricane Ida – was believed to include expected losses resulting from the New Wales incident.
With no new price points reported for the week, the Central Florida DAP truck market continued to be called $620/st FOB, unchanged from the prior report. MAP trucks remained at $655/st FOB. Truck-loaded MAP loading from North Florida reportedly moved up $15/st, to $655/st FOB, portending possible increases at Central Florida in the next round of business.
U.S. Gulf:
Hurricane Ida’s Aug. 29 landfall at Louisiana effectively cast a shroud of uncertainty over the NOLA phosphate market, sources indicated.
The Category 4 storm’s sustained 150 mph winds damaged Mosaic’s Faustina and Uncle Sam phosphate production facilities, and shut down marine logistics operations in much of the U.S. Gulf and lower Mississippi River.
Players noted most sellers quickly pulling offers from the table in order to reassess market conditions going into the busy fall planting season. A small number of DAP trades were heard concluding prior to the hurricane’s landfall up to a reported $620/st FOB, while post-Ida offers and trades were heard firming to $625/st FOB by Sept. 2.
MAP prices were also seen moving up, with sources calling late-week values up to $668/st FOB, higher than the prior week’s $660/st FOB top end
Hurricane damage at Faustina and Uncle Sam is estimated to require 8-9 weeks of repairs. Mosaic’s third-quarter phosphate production levels are expected to be reduced by 300,000 mt compared to historical norms. Output will improve into the fourth quarter, the company said, but could remain below typical levels.
Considering both the timing of the lost production and ongoing tight supply in the market, players agreed that NOLA phosphates were likely to see firming values headed into fall.
The barge DAP market was noted climbing to $615-$625/st FOB for the week, sources said, rising from $600-$610/st FOB in the prior report. MAP prices firmed to $660-$668/st FOB, up from the week-ago $650-$660/st FOB.
U.S. Exports:
No new movement was reported on the U.S. Gulf phosphate export markets. Last-done spot transactions continued to be reported at $660/mt FOB for DAP and $685/mt FOB for MAP.
Eastern Cornbelt:
The DAP market was quoted at $645-$655/st FOB in the Eastern Cornbelt, with the low reported at Cincinnati in early September. Offers at East Dubuque were confirmed at the $650/st FOB level for August-September tons
MAP prices edged higher during the week, with reports of new prompt MAP offers firming to $705/st FOB at some river terminals in Illinois, up from a high of $695/st FOB the week before. The Cincinnati MAP market was reported at $680-$695/st FOB at midweek.
Western Cornbelt:
DAP pricing was up $5-$10/st, to $645-$655/st FOB in the Western Cornbelt, with the lower end of the range confirmed at St. Louis. MAP was pegged in a broad range at $680-$705/st FOB in early September, with the low reported at St. Louis and the high at Camanche and reflecting a $10/st increase from last report.
Southeast:
Posted prices at Aurora, N.C., firmed $15/st during the week, to $655/st FOB for MAP and $665/st FOB for DAP. The company said no DAP was available in early September, however.
California:
MAP pricing in California moved up $15/st in September, firming from $750/st to $765/st rail-DEL and FOB French Camp, Helm, Richvale, Dixon, and El Centro.
Pacific Northwest:
MAP prices strengthened $15/st in the Pacific Northwest on Sept. 1, with new offers reported at $750-$752/st FOB, $755/st DEL in Washington, Oregon, and Nevada, and $745/st DEL in Idaho, Utah, and Montana.
Western Canada:
MAP prices in early September remained at C$1,005-$1,020/mt FOB and C$1,010-$1,030/mt DEL in Western Canada, depending on location. Some suppliers had reportedly pulled pricing offers as the week progressed, however, with expectations of new offers emerging at the $1,030/mt DEL level or higher.
Saudi Arabia:
Recent pricing on phosphate vessels loading from Saudi Arabia was heard in the $620-$640/mt FOB range, increasing from the prior week’s $620-$635/mt FOB.
India:
Reports of a Ma’aden DAP sale to India at $653/mt CFR were dismissed as an old price that was leaked to prop up the market. Sources said a more current set of deals were two cargoes sold by OCP to India at $564/mt CFR.
International traders said the OCP rate is more in line with what India can afford, even though it is pushing against the maximum retail price allowed for DAP in the country.
Sources said inland supplies of DAP are lower than they should be at this time. Reportedly farmer are getting frustrated at the low DAP reserves and have begun to issue orders for urea and NPKs, pushing up demand for those products.
RCF will close a tender on Sept. 7 for 100,000 mt of DAP in 50 kg bags to be delivered to Kakinada. The order is to be broken into two lots of 50,000 mt each. The first lot must ship by Oct. 15, and the second by Nov. 15.
Another tender, also by RCF, calls for two lots of 20,000 mt each of phosphate rock, DAP, or MAP. The tender closes on Sept. 3. The first lot must ship by the end of October and the second by the end of November.
China:
Reports of a DAP sale by two Chinese producers to Pakistan has moved the netback price into the $630s/mt FOB. Sources put the new range at $630-$635/mt FOB. The deals in Pakistan were reported at $683/mt CFR.The increase in price puts Chinese DAP further out of reach of Indian buyers.
Pakistan:
Reportedly two cargoes from China were sold at $683/mt CFR. The deals moved up the Chinese netback marginally.
Brazil:
The MAP market is reported at $70-$725/mt CFR at Paranagua. Buyers claim they are having difficulty finding the product they need. Some of the portside shortage will be covered as soon as vessels are allowed to dock. Source reported some delays getting to the pier of more than a month.
Inland buyers are also nervous about getting material because of the continued shortage of trucks to move the product from the port cities to the regional distribution centers and blending facilities.
Rondonopolis is reported at $831-$870/mt FOB ex-warehouse, showing some stability in pricing.The barter rate at Sorriso is now pegged at 42 bags of soy for 1 mt MAP.