Central Florida:
DAP trucks loading from Central Florida were steady at $945/st FOB for the week, unmoved from the previous report. Posted pricing on truck-loaded MAP was also flat at $945/st FOB.
Sellers reduced North Florida MAP truck offers by $50/st on June 2, leaving that product in the $890-$940/st FOB range for the full week, below $940/st FOB reported previously.
U.S. Gulf:
NOLA DAP and MAP barge values fell sharply during the week, with levels for both products notching prices below the $800/st FOB mark for the first time since February.
DAP volumes were reported trading at a $750/st FOB low on May 31, falling from the week-ago $820/st FOB bottom. Players described early-week trading at $780/st FOB, with offers largely returning to the $800s/st FOB level toward the end of the week, with no takers.
“I can’t find another DAP offer other than (the) $800s it was trading at last week, and no one wants to bid above the $750 for fear that the same thing or worse will get offered next week to push it lower,” said one trader.
MAP pricing also declined, with players noting a $780/st FOB trade concurrent with the lower DAP movement on May 31, following early-week offers closer to the prior week’s $840/st FOB floor. Players mentioned topside demand for prompt MAP barges in the $820-$840/st FOB range during the week due to potential export opportunities available to stronger markets in Latin America.
Sources were divided on the reasons for the week’s lower pricing, with some citing slow application or ongoing fears of potential inventory carryover. Others believed the price drop represented a possible index play, citing both limited volumes available at the reduced levels and the lack of recurring offers recorded at that price through June 2.
“(There is) not a lot of justification for these levels as the U.S. was already the cheapest in the world,” argued one market player.
DAP barge pricing for the week was reported in a wide $750-$780/st FOB range, falling from $820-$830/st FOB in the prior report. MAP barges softened to $780-$840/st FOB, down from $840-$880/st FOB at last report.
U.S. Exports:
A quiet week on the Gulf phosphate DAP and MAP markets left pricing for both products in the $1,080-$1,100/mt FOB range, unchanged from the prior report. The growing disparity between NOLA barge pricing and a number of offshore markets prompted increased arbitrage interest from players with export capacity, sources indicated.
Eastern Cornbelt:
DAP pricing slipped again to $870-$920/st FOB in the Eastern Cornbelt, down some $15-$40/st from last week. The Cincinnati market began the week in the $910-$920/st FOB range before another drop on June 2 pushed offers to the $870-$895/st FOB level at that location.
MAP was quoted at $875-$940/st FOB in the region, depending on location and time of the week, with the low again confirmed at Cincinnati on June 2. The Ottawa, Ill., market was pegged at the $900/st FOB level for both DAP and MAP at midweek.
In the Great Lakes region, the last DAP offers were reported at $930/st FOB Toledo, with MAP pegged at the $1,000/st FOB mark out of spot Michigan warehouses.
Western Cornbelt:
DAP pricing was reported at $875-$910/st FOB in the region, down another $15-$30/st, with the low confirmed at St. Louis. MAP fell in the $890-$935/st FOB range, down from the prior week’s $900-$950/st FOB, with the St. Louis market pegged at $890-$910/st FOB.
Northern Plains:
DAP pricing reportedly slipped to $890-$910/st FOB St. Paul, with MAP reported at $900-$920/st FOB at that location. Delivered green MAP in western North Dakota was pegged at the $985/st level in early June, down $45/st from last report.
Northeast:
New DAP offers in the Northeast were confirmed at $925-$940/st FOB, down from $950-$980/st at last report. MAP was quoted in a broader range at $970-$1,010/st FOB in the region, with the low reported at East Liverpool, Ohio, and the high at Fairless Hills. Pennsylvania sources also confirmed $980/st DEL pricing for MAP in early June.
“P and K were down quite a bit this spring,” commented one regional contact. “Between wet weather and high prices, applications appear to have been skipped or reduced.”
In the Southeast, Nutrien dropped its phosphate prices $50/st on June 2, with DAP moving to $840/st FOB Aurora, N.C., and MAP to $890/st FOB Aurora and White Springs, Fla.
Eastern Canada:
MAP pricing in Eastern Canada was quoted at C$1,465-$1,475/mt FOB, down C$10-$20/mt from last report. The DAP market at Montreal was down a full C$40/mt, to C$1,455/mt FOB in early June.
Saudi Arabia:
Cargoes reported sales into a number of international markets that pulled Saudi Arabia DAP and MAP prices into a wide $700-$1,070/st FOB range in recent trading.
Russia:
An announcement by Moscow that the export of “complex fertilizers” would not be limited in June led sources to understand that DAP and MAP exports might step up.
At the same time, the U.S. issued a notice that the shipment of Russian fertilizers would be exempt from the sanctions placed on Russia because of its invasion of Ukraine. The move by the U.S., said one trader, could release more tons into the market, easing concerns by major buyers such as Indian and Brazil.
China:
Sources said pricing ideas for DAP out of China have softened. While no deals have been confirmed, sources said prices are now being discussed at $960/mt FOB.Phosphate exports are facing the same potential delays in customs approvals as nitrogen product. Sources said clearances are now taking 60-120 days instead of the previous 30-60 days.
Brazil:
The price of MAP softened marginally at the top end of the range, to $1,100-$1,180/mt CFR. Sources said buyers are taking only what they need, while also pushing for sub-$1,100/mt CFR deals.
One of the arguments for lower prices is the growing line-up of vessels. Sources said ships bearing Russian material are being booked faster than they can be unloaded.
Rondonópolis also showed a drop in MAP pricing, to $1,190-$1,270/mt FOB ex-warehouse. Buyers point to plentiful supplies as a pushback against efforts by suppliers to at least hold the line on pricing.