Central Florida:
DAP trucks loading from Central Florida were posted at $640/st FOB for the week, firming from $620/st FOB. Truck-loaded MAP moved to $670/st FOB, a $15/st increase on the week-ago $655/st FOB.
MAP loading from North Florida firmed to $670/st FOB, up from the week-ago $655/st FOB.
U.S. Gulf:
Tight DAP and MAP inventories throughout the U.S. system translated to expanding prices for the week, players indicated.
Loaded DAP barges were reported changing hands at $670/st FOB early in the week before firmed to $673/st FOB on Sept. 16, sources said, rising from the prior week’s $652/st FOB high. Fresh price postings from domestic producers were reported at $635/st FOB, below the week-ago $640/st FOB floor. Availability was described as extremely limited at the bottom of the range, as sellers prioritized the fulfillment of preexisting orders over new sales.
MAP values also pressed higher, with sources quoting $710/st FOB business at the top of the range, a $25/st jump from the prior $685/st FOB ceiling. Domestic offers were posted at $665/st FOB, slipping from the week-ago $670/st FOB floor.
NOLA DAP values were pegged in a wide $635-$673/st FOB range for the week, moving from $640-$652/st FOB at last report. Sources quoted NOLA MAP barges at $665-$710/st FOB, compared with last week’s $670-$685/st FOB range.
U.S. Exports:
Sources reported no new transactions on the Gulf export phosphate markets, leaving last done at $660/mt FOB for DAP and $685/mt FOB for MAP.
Eastern Cornbelt:
DAP prices were reported at $670-$710/st FOB in the Eastern Cornbelt, up another $15-$30/st from last week, depending on location. Sources quoted the high end of the range for new offers out of spot Illinois River terminals, while the Cincinnati DAP market was generally reported in the $670-$685/st FOB range during the week.
The MAP market was reported in a broad range at $720-$775/st FOB in the region, up dramatically from the previous week’s $700-$720/st FOB range. While the upper end of the range was once again reported on the Illinois River, the Cincinnati MAP market was pegged at $720-$735/st FOB at midweek.
Western Cornbelt:
DAP pricing was reported in a broad range at $685-$725/st FOB St. Louis and Dubuque, Iowa, with the Caruthersville market pegged at a solid $705/st FOB at midweek.
MAP was quoted at $725-$770/st FOB in the Western Cornbelt, up some $45/st at the top end of the range, with the St. Louis market covering a broad range at $725-$760/st FOB during the week.
Southern Plains:
The DAP market jumped to $700-$725/st FOB Catoosa/Inola, up some $40/st from the previous week and $60-$80/st higher than prices in late August. MAP surged to $730-$770/st FOB Catoosa/Inola, with the Houston market pegged at $730/st FOB for MAP and $690/st FOB for DAP at midweek.
South Central:
DAP pricing jumped to a broad range at $670-$725/st FOB in the South Central region, with the low confirmed at Memphis and the high at Shreveport. Kentucky sources pegged the common price at the $700/st level FOB Ohio River terminals at midweek, while the market FOB Little Rock had reportedly strengthened to the $720/st level.
Southeast:
Posted prices at Aurora, N.C., and White Springs, Fla., reportedly firmed to $670/st FOB for MAP during the week, up another $15/st from early September and $30/st higher than late August reference prices. Sources pegged the latest DAP price at $680/st FOB Aurora, but Nutrien reported no DAP tons available there for the foreseeable future.
Saudi Arabia:
Phosphate values were noted moving up at Saudi Arabia, with market sources reporting cargoes in the $630-$645/mt FOB range for the week, rising from $625-$645/mt FOB in the prior report.
China:
Production of DAP and MAP is expected to be affected by as much as 40 percent following a move by the Yunnan provincial government to have companies cut back on phos rock production.
At the same time, environmental inspectors have been hitting DAP/MAP producers with penalties. Sources said two plants in Hubei were shut down after inspectors issued violations for excessive gypsum levels. More modern plants, such as those operated by YUC and Xiangfeng, are not expected to be affected by the cutback in phos rock nor by the environmental inspections.
What could hit those plants, however, are cutbacks in available electricity. The government has told energy suppliers to give priority to residential uses over industrial customers. With winter coming, sources said the government wants to make sure there is enough heat and light for homes. There was a similar diversion away from the plants in the summer to ensure enough power to run home air conditioners.
Prices remain steady, and export possibilities are still up in the air. The government has included DAP and MAP in its directives to producers to ensure a plentiful supply for the domestic market at low rates. The current $620-$635/mt FOB is still seen by many as high. With limited production, strong demand, and ever more expensive inputs, however, there is little expectation that prices will come off.
India:
So far, the Indian government has not moved on raising the maximum retail price for DAP. Sources said any DAP coming in higher than $326/mt CFR will result in a loss for the importer.
International traders said there is a lot of talk from their partners that pressure is being put on the government to provide some sort of subsidy to the importers without affecting the price to the farmers. However, the subsidies for urea and other agricultural products are already taking a major toll on the Indian treasury.
A tender for two lots of DAP held by RCF closed with only a couple of offers. The tender called for one lot of DAP to be shipped in mid-October and a second in mid-November. Ameropa reportedly only offered on the October lot at $674/mt CFR with open sourcing. Agrifields offered at the same price for the October shipment plus $678/mt CFR for the November cargo, both with material from OCP.
Reportedly, Ameropa was given the award for the October shipment and Agrifields for the November lot. The award moved the market price for September-October to $666-$674/mt CFR.
RCF also held a tender for two lots of 20,000 mt each of either GMAP (10-50-0) or DAP lite. Only Agrifields offered at $715/mt CFR for 20,000 mt of GMAP to be shipped in October, and $734/mt CFR of the same product for November.
Normally, RCF would have scrapped the GMAP tender because only one company offered. A trader said the fact they went ahead and awarded to Agrifields showed how desperate the NPK producers are for the product.
Brazil:
Paranagua MAP prices edged higher to $700-$725/mt CFR. Sources said the price increase would have been greater if not for the presence of a cargo from China.
Buyers are desperate for MAP and SSP, the latter being hard to find in any situation. MAP imports appear to be hampered by delays at the ports. Some cargoes reportedly have to wait 30-45 days to berth and unload their cargoes.
Rondonopolis showed a dramatic jump to $832-$950/mt FOB ex-warehouse. Sources said the nearly $100/mt jump in the upper end of the range came because some buyers are willing to move to MAP in the complete absence of SSP in some areas of the country. The barter rate for 1 mt of MAP in Sorriso remains at 100 bags of corn.
Russia:
January-July DAP exports were down 13.6 percent, according to Trade Data Monitor, to 807,000 mt from 934,000 mt during the same period in 2020.July DAP exports were down by more than half, to 69,000 mt from 144,000 mt in July 2020.
January-July MAP exports were up 13 percent, to 1.52 million mt from 1.35 million mt last year. Brazil was the main buyer at 724,000 mt, followed by Estonia at 443,000 mt. However, the Brazilian government reported MAP imports from Russia for the same period at 895,000 mt. Sources said some of the Estonian tons most likely were sent on to Brazil and counted as Russian by the Brazilian authorities.