Central Florida: Tropical Storm Debby dropped 20-30 inches of rain on central and northern Florida during the past week and created widespread flooding. The storm sat off the coast for several days before finally moving east over northern Florida on Wednesday. Sustained winds only reached about 40 mph, but gusts hit as high as 60 mph.
PotashCorp received about 20 inches of rain at its White Springs facility in North Florida and was out of service as a result of flooding and a loss of power. The company said product already produced was dry and there was no major damage to the facility, but production was likely to be halted for about two weeks. The company said product shipment had been halted due to flooding, but it was working to meet commitments to its customers.
Neither Mosaic nor CF Industries reported any damage. Mosaic said it received 12-15 inches in the widespread area in which it mines and has processing plants, but water levels at its facilities were low prior to the storm.
However, rivers in many areas were reaching historic highs and were expected to flood during this week. There was no report of crop damage, but fertilizer operations and deliveries were halted during the rain and high winds.
The DAP price range for Central Florida was unchanged last week at $490-$500/st FOB. CF’s posted price was at the $500/st FOB mark, and Mosaic was also at $500/st FOB. The lower priced DAP was available from a trader.
MAP continued to sell at a $20/st premium to DAP in Central Florida, about the same difference as from traders.
U.S. Gulf: While Florida was being flooded by Tropical Storm Debby last week, the Midwest was suffering from no rain and temperatures in the upper 90s and triple digits.
USDA said about 56 percent of the corn crop was in good-to-excellent condition nationally, which was down 7 percent from a week earlier. Yield reductions were expected in Illinois, Indiana, Missouri, southern Nebraska, southeastern Iowa, and Kansas. Soybeans were also said to be suffering from the conditions.
The extremely high temperatures were expected to continue through this week, according to weather forecasts. About 10 percent of the corn crop was silking, but pollination will be occurring under harsh conditions, which was expected to decrease yields.
As a result, crop prices were on a sharp rise. Prices for 2012 corn futures rose to $6.4125/bushel for December, up from the previous week’s $5.5925/bushel. The corn price for December 2013 was $5.775/bushel, increasing from $5.30/bushel the previous reporting period. For November 2012, soybeans moved up to $14.065/bushel from $13.8025/bushel the previous week, and soybeans for November 2013 increased to $12.4475/bushel from $12.35/bushel a week earlier. Wheat for July 2012 rose to $7.3075/bushel from $6.6775/bushel the week before, and wheat for July 2013 was listed at $7.985/bushel last week, up from $7.32/bushel the previous week. Wheat for July 2014 was posted at $7.9975/bushel.
Mississippi Phosphates was back in operation last week, but it was not clear whether it had returned to full production. The plant was shut down by the Occupational Health and Safety Administration (OSHA) in early June after two separate explosions and two deaths at its acid plant. The OHSA investigation could take up to six months to complete.
Inventories of DAP remained very low last week, and that was expected to continue throughout the summer. A vessel containing DAP, MAP, and TSP from OCP will be arriving during July, but no prices from the trader involved were available. The drought will result in higher crop prices and crop insurance should offset the yield losses, but farmers may hold off buying for fall applications if money becomes tight.
Trading was very light last week, as dealers held off on any action