Central Florida: The waiting game for the spring season continued in Central Florida last week, and that could go on for another two weeks to a month – and possibly longer.
No new prompt sales of phosphate railcars were found, but Mosaic appeared willing to deal and would consider offers as much as $20/st FOB below its asking price of $480/st FOB, at least for certain quantities.
However, CF Industries has no need to consider anything less than its asking price, because it has already sold out of product until late this month or early April. CF’s preference would be for an export deal, according to sources.
PotashCorp was making sales in the Southeast at a somewhat more brisk pace, but most of that was probably coming from its Aurora, N.C., plant.
Weather in the areas normally served from Central Florida continued to be a problem last week, with a snow storm striking much of Ohio and the East last week.
Despite a lack of prompt spot sales, the Central Florida DAP price range faltered a little last week, moving from a flat $480/st FOB the previous week to a somewhat more realistic $460-$480/st FOB. Both Mosaic and CF were posted at the $480/st FOB mark, but Mosaic was willing to deal. MAP remained in short supply and was listed at a $20/st premium to DAP by Mosaic in Central Florida, about the same difference as from traders. PCS Sales was selling at prices comparable to the market.
U.S. Gulf: The Gulf’s river system began to trickle last week. A few NOLA DAP barges were traded, and not just for export, as has been the case for more than a month.
Like the river, spring should bring a steady and heavier flow to the phosphate barge market, but it will take a little longer. Still, barges being sold for domestic consumption were a good sign. Nevertheless, the export market continued to provide a bonus for those willing to take the risk to round them up for a deal.
With prices in the mid-to-low $400s/st FOB, the biggest player, Mosaic, was not participating in the market. Once prices begin to rise, that will change. For now, Mosaic was concentrating its efforts in the export market, and that was being done out of Central Florida.
Although far from overwhelming, business at terminals was on the increase last week. Dealers will want to sell much of what they have before reordering.
Prices for corn futures moved up last week compared to the previous week, rising from $5.5825/bushel to $5.685/bushel for December 2012. The corn price for December 2013 was $5.597/bushel, up from $5.47/bushel the previous reporting period. Soybeans for November 2012 increased to $12.925/bushel from $12.6775/bushel the previous week, and beans for November 2013 moved up to $12.24/bushel from $12.11/bushel the previous week. Wheat for July 2012 increased to $6.805 from $6.5125/bushel a week earlier, and wheat for July 2013 was listed at $7.32/bushel last week, up from $7.125/bushel a week earlier.
The NOLA DAP barge price range for the week was $435-$447/st FOB, moving above the previous week’s range of $427-$437/st FOB. The market may float up and down for another couple of weeks before the pace and the price picks up. Prices for MAP were running about $30/st FOB higher than DAP.
Eastern Cornbelt: The DAP market in the Eastern Cornbelt was steady at $495-$515/st FOB regional warehouses, with MAP quoted in the $525-$545/st FOB range in the region. The 10-34-0 market was unchanged at $725-$740/st FOB in the region.
Western Cornbelt: DAP pricing was pegged at $490-$505/st FOB regional warehouses, with MAP in the $515-$535/st FOB range in the Western Cornbelt. An Iowa contact quoted the dealer market for MAP at the $525/st FOB level in his location at midweek.
10-34-0 was steady at $675-$700