Central Florida:
Central Florida DAP postings firmed to $590/st FOB, up $10/st from the week-ago $580/st FOB. MAP moved up as well, to $615/st FOB from last week’s $605/st FOB.
U.S. Gulf:
Barge DAP and MAP prices at NOLA continued to press higher for the week, sources reported, although prompt availability was tightening.
DAP loading in a wide May-September window was reported firming to a $585/st FOB high, up from the prior $580/st FOB ceiling, while the bottom of the range lifted to a reported $577/st FOB from the week-ago $570/st FOB.
Despite the wide loading window, many sources described prompt availability as limited and expected most material to load in the July-August window.
MAP also moved up, with players quoting May-September trades at $610/st FOB, rising from $600-$610/st FOB at last report. Sources noted open interest in the $610-$620/st FOB range for forward loading, although tight supply limited trades at that level, players said.
DAP barges were reported in the $577-$585/st FOB range for the week, firming from $570-$580/st FOB in the prior report. Sources quoted MAP trading at $610/st FOB, climbing from $600-$610/st FOB at last report.
U.S. Exports:
Nothing new was done on the week’s Gulf spot export market, with the last reported business consisting of a 6,000-7,000 mt cargo set for May loading and priced at $583/mt FOB. An additional small-lot DAP cargo that traded around the same time carried $595/mt FOB pricing, but was excluded from the Green Markets range due to the load’s diminutive size.
Based on reported business, the Gulf export phosphate markets continued to be quoted at $583/mt FOB, unchanged from the prior week.
Eastern Cornbelt:
DAP was quoted at $620-$630/st FOB in the Eastern Cornbelt, with the lower end of the range confirmed at Cincinnati. MAP pricing had reportedly strengthened to $650-$660/st FOB in the region, up $10/st at the low end of the range.
Western Cornbelt:
Phosphate prices continued to climb in the Western Cornbelt. DAP was pegged at $610-$625/st FOB in the Western Cornbelt, up another $5/st from last report. MAP was quoted in the $645-$660/st FOB range, some $15-$20/st higher than the previous week, with the low at St. Louis, Mo., and the upper end at Dubuque, Iowa.
Sources reported the Catoosa/Inola, Okla., market at $620/st FOB for DAP and a firm $650/st FOB for MAP, while pricing FOB St. Paul, Minn., was reported at $625/st for DAP and $650-$660/st for MAP.
California:
Sources reported firming phosphate prices in California. MAP prices were up $25/st following two recent back-to-back producer price hikes, with levels now quoted at a firm $715/st FOB or DEL in California
Pacific Northwest:
MAP prices were up $25/st from last report in the Pacific Northwest, to $702/st FOB Aurora, $705/st DEL in Washington, Oregon and Nevada, and $695/st DEL in Idaho, Utah, and Montana.
Western Canada:
The MAP market in Western Canada was quoted at C$930-$955/mt FOB and $950-$960/mt DEL in mid-May, depending on location.
Saudi Arabia:
Saudi Arabia DAP continued to be heard in the $545-$565/mt FOB range for the week.
China:
Prices in China are on a rebound as DAP producers are now asking $550/mt FOB. The rebound came as the Indian government announced it would increase the subsidy to DAP and as phosphate demand picked up in the Americas. Sources said deals were done this week in the upper-$540s/mt FOB.
Traders said producers are confident they will be able to move the price into the $550s/mt FOB soon.
India:
For now, the imported DAP price in India remains in the $560s/mt CFR. However, rising prices from China and an anticipated increase in demand could move the price up to $600/mt CFR.
The increased demand for DAP is expected following an announcement from the Indian government that it is increasing the subsidy for a 45 kg bag of DAP from Rs500 (US$6.84) to Rs1,200 (US$16.43).
The subsidy will account for half the market price of DAP at the distribution centers, which is currently Rs2,400/bag, and drops the price to farmers down to 2019 levels of Rs1,200/bag.
Under pressure from the central government, companies first sold all their old DAP at the Rs1,200 level instead of adjusting it to match current market rates. That product was soon sold out and replaced with newer and more expensive domestic and imported DAP.
The government explained that if it did not raise the subsidy, farmers would be paying Rs1,900, which would cause a hardship on the farmers. The subsidy of Rs1,200 is only for this season, however. The government was clear to point out that it does not want to continue to subsidize DAP and other phosphates at such a high level in the future.
International traders said increasing the subsidy is a typical action taken by an Indian government looking to gain favor with the farming community. One trader said Prime Minister Narendra Modi’s popularity ratings are dropping because of the current COVID-19 situation in India, and what many farmer organizations criticized as the mishandling of agricultural reform programs last year.
Brazil:
Prices for MAP in Brazil have moved up, reflecting a general global increase in phosphates. Sources put the Paranagua market at $620-$645/mt CFR, up $25/mt.
Sources said OCP started selling product this week at $620-$625/mt CFR, but quickly shifted into the low-$630s/mt CFR.
Rondonopolis is now pegged at $700-$735/mt FOB ex-warehouse, up $10/mt from last week at the higher end of the range. Higher prices are expected, said sources, because supplies of MAP remain tight and demand is steady.
Inland distributors described MAP supplies as limited-to-nonexistent. Imports from early May to mid-June total 197,000 mt, according to shipping and port reports.
The barter rate for 1 mt of MAP remains at 37 bags of soybeans.