Central Florida: Weather in the eastern U.S. continued to be near perfect last week, and the harvest was underway, but farmers still had a long way to go. Dealers continued to hold off making buys, hoping prices will go down. However, that was not the case on the river last week, where they did both.
Several traders said they believed sales would remain slow and dealers may wait until spring to make a move.
The Central Florida market price range last week continued unchanged at a flat $410/st FOB. Large customers should get better prices. Although no new spot sales were found, sources indicated prices would continue to be weak and may decline more, as they have on the NOLA river system. MAP continued to bring a premium of $20/st FOB over DAP at Central Florida.
U.S. Gulf: NOLA DAP prices moved up a couple of dollars from the bottom of the previous week’s price range, but also retreated the same amount from the top of the range last week.
Because the water levels on the Mississippi River were still lower than normal last week, the chances of the upriver freezing earlier than normal were higher.
The usual closing date for the upriver has been about Oct. 15, but cold weather could shut it down sooner this year.
Docks at Memphis and Blytheville were benefitting from recent rains and hoped to be open for at least a few days late last week and early this week.
However, unless areas that feed the river get another heavy dose of rain, the river south of St. Louis could also be no better off than the upriver by mid-October.
The U.S. Drought Monitor’s map showed overall improvement with the nation’s dry ground situation last week. Almost all of Kansas was no longer in the "extreme drought," which has plagued it since early 2012. Colorado’s drought condition improved greatly, but the devastating floods that destroyed more than a thousand homes and killed a number of people and livestock were not a welcome change.
As of last week, about 7 percent of the nation’s corn crop had been harvested, along with around 3 percent of soybeans. Those were both below the average for that time of year, when 16 percent of corn and 5 percent of soybeans would already have been harvested.
On the futures market, prices for corn and soybeans were down compared to the snapshot from the previous week, but prices for wheat were on the rise. For December 2013, corn was $4.57/bushel, a decrease from the $4.605/bushel for the previous reporting period. Corn for December 2014 was posted at $4.9675/bushel, $0.02 lower in comparison to $4.9875/bushel the previous week. The soybean price for November 2013 was $13.1725/bushel, less than the $13.5825 bushel a week earlier. Beans for November 2014 were posted at $11.7925/bushel, lower than the $11.91/bushel the previous reporting period.
Wheat for December 2013 improved to $7.275/bushel, which was stronger than the $7.0125/bushel the previous week. Meanwhile, wheat for July 2015 was posted at $7.16/bushel, higher than $6.9775/bushel from the last report.
Warehouse and terminal DAP prices remained flat to weak, and MAP was running $25-$30/st FOB higher than DAP. The price gap between the two will likely shrink with the arrival of OCP product. Although the first of those vessels had already unloaded, most of that product was sold prior to arrival, but that was not believed to be the case for the next vessels. MAP activity ranged from slow to moderate last week.
Sources said phosphate prices will likely fall somewhat after the fall season ends, unless the export market kicks into gear. Now that the Indian rupee has stopped its free fall, the export market could begin to stabili