Central Florida:
Central Florida DAP trucks continued to be posted at $945/st FOB, unchanged from the prior report. MAP loaded to trucks was quoted even with DAP at $945/st FOB.
Players described truck-loaded North Florida MAP at $940/st FOB, unmoved from one week earlier.
U.S. Gulf:
DAP and MAP barges loading from NOLA were reported moving down for the week.
DAP barges loading in a 30-day window were heard offered down to $820/st FOB, unchanged from last week, while players reportedly offered up to $830/st FOB, a decline from the week-ago $860/st FOB top. Players described few, if any, transactions concluding during the week, however.
MAP barge pricing proved more contentious, with players noting offers down to at least $840/st FOB, declining from the previous $850/st FOB level. Offers tracked as high as $880/st FOB through the period, falling from the prior $895/st FOB high. Rumored $830/st FOB offers went unconfirmed on May 26. Like DAP, few if any barge MAP trades were concluded during the May 20-26 period.
Some noted an uptick in upriver product movements for the week due to accelerated planting progress in some regions, although that demand was not heard extending to NOLA.
Nearby NOLA DAP barge offers were reported at $820-$830/st FOB, softening from $820-$860/st FOB in the prior report. Players reported MAP offers at a wide $840-$880/st FOB, falling from $850-$895/st FOB one week earlier.
U.S. Exports:
With no new pricing reported, the Gulf phosphate export market continued to be indicated in the $1,080-$1,100/mt FOB range, steady from the prior report.
Eastern Cornbelt:
DAP pricing covered a wide range at $895-$960/st FOB in the Eastern Cornbelt, down another $5-$15/st from last week, with the low confirmed in southern Illinois on a spot basis and the high at Cincinnati.
MAP was reported at $900-$960/st FOB in the region, also reflecting a $15/st drop from the previous week, with the high again confirmed at Cincinnati.
In the Great Lakes region, new DAP offers were reported as low as $930/st FOB Toledo in late May.
Western Cornbelt:
DAP pricing was reported at $890-$940/st FOB in the Western Cornbelt, with the low confirmed at St. Louis and the high in Iowa. MAP fell in the $900-$950/st FOB range in the region, down from the prior week’s $915-$960/st FOB, with the St. Louis market pegged at $900-$930/st FOB.
California:
MAP was quoted at $1,060-$1,070/st FOB or DEL in California. “We are seeing reduction in P and K rates, with some reporting as high as 20-30%,” noted one source in late May. “Most are working to sell out of existing commitments.”
Pacific Northwest:
MAP prices were down to $960-$990/st DEL in the Pacific Northwest, depending on location, well below the last confirmed range of $1,050-$1,060/st DEL in early May.
“This has been a slow season,” commented one regional source. “When we are done, I expect most will be saying that demand destruction will amount to about 10-20% on the dry P and K. Nitrogen hasn’t showed its hand as of yet.”
“Spring demand has been lackluster throughout the season,” added another contact. “Cool, wet weather and price avoidance, if possible, have been top-of-mind for most growers.”
Western Canada:
MAP prices were under pressure in Western Canada. Sources pegged the current market at C$1,360-$1,450/mt FOB, down from C$1,450-$1,535/mt FOB at last report. No current delivered MAP prices were confirmed during the week.
India:
The 66% rise in DAP prices has forced the government to authorize more funds for the Nutrient Based Subsidy (NBS) program. While the NBS system does allow for some movement of prices to reflect market forces, the government has established a ceiling on prices to farmers. Anything beyond that is covered by subsidies.
The government has approved an increase in total subsidy allotments to US$27.7 billion from the earlier allocated US$13.5 billion. The new allotment for DAP and MOP subsidies for the April-September application season will be US$786,000, compared to the US$737,000 spent for the whole 2021/22 fiscal year.
The lack of any new spot business has prices holding at $1,030/mt CFR.
China:
The combination of export restrictions and the traditional drifting pattern that precedes most IFA annual meetings is keeping prices in the $990s/mt FOB.
Exports of DAP for the January-April period were down to 938,000 mt, according to Trade Data Monitor. This is a 32% drop from the 1.4 million mt exported during the same period in 2021.
India with 309,000 mt, Bangladesh with 160,000 mt, and Thailand with 136,000 mt were the main DAP buyers in the first four months of the year.
April 2022 exports were also off compared to April 2021. Trade Data Monitor reported April 2022 exports at 195,000 mt, down 57% from the 455,000 mt exported in April 2021. India took about 62% of the exports with 120,000 mt. Indonesia was second with 27,000 mt, taking a 14% share of the export market.
January-April exports of MAP were reported at 381,000 mt by Trade Data Monitor. This is about 60% down from the 960,000 mt exported during the same period in 2021.Australia dominated the buyers in the first four months of the year, taking 139,000 mt.
April 2022 exports were down about 52%, to 179,000 mt from the 373,000 mt exported in April 2021. Argentina led the way, buying 70,000 mt for 39% of China’s MAP exports. Brazil was second, taking 55,000 mt in April for 31% of the exports.
Brazil:
The landed price of MAP is under pressure as importers of Chinese, Russian, and Moroccan product compete for new negotiations. Sources reported a slight softening to $1,100-$1,200/mt CFR.
There are reports that a small cargo of Russian material was sold at $1,000/mt CFR, but without solid confirmation. Sources said it could be possible, however. The news came as sources reported that Russia was dumping urea on the market in an effort to entice buyers to bypass or ignore the sanctions imposed on it because of the invasion of Ukraine.
Sources said the Chinese MAP being offered represents the lower end of the existing price range. Moroccan material represents the upper end.
The range in Rondonópolis expanded as prices softened on the lower end. Sources put the price at $1,260-$1,290/mt FOB ex-warehouse. Sources said the shift reflects the situation at the ports.