Central Florida:
No price changes were reported on truck-loaded DAP and MAP in the Central Florida market. DAP trucks were posted at $640/st FOB, while MAP was offered $10/st lower at $630/st FOB.
North Florida MAP trucks were posted at $650/st FOB, sources said, steady from the prior report.
US Gulf:
NOLA phosphate barge prices were reported softening from week-ago levels.
Players noted offers for full-May DAP barges dropping to $530/st FOB, echoing price declines seen in the MAP market one week before, while traded values tracked at a flat $520/st FOB, a sharp decline from the week-ago $646/st FOB floor. Prompt offers reported at $600/st FOB did not attract public bids, sources said.
MAP pricing was heard slipping to $485/st FOB, down from $499/st FOB in the prior report, while players put the top of the traded range at $500/st FOB. New offer levels for May barges were generally reported in a $510-$530/st FOB range at midweek.
Sources attributed the falling values to a number of factors, including fears of inventory spillover into June, possible indexing efforts related to an expected strong May-June import lineup, and ongoing flood-related freight holdups on the Upper Mississippi River.
Based on reported trades, NOLA DAP barges were priced at $520/st FOB for the week, below $646-$650/st FOB in the prior report. MAP barge pricing softened to $485-$500/st FOB, off from $499-$630/st FOB at last report.
US Exports:
Sources reported softer export pricing out of the US Gulf, noting a 21,000 mt DAP cargo sold into the northern Latin American markets during the week. Priced at $550/mt FOB, the tons were slated for late-May or early-June loading.
Based on reported spot transactions, the Gulf export phosphate price fell to $550/mt FOB, a $60/mt decrease from $610/mt FOB noted previously.
Eastern Cornbelt:
DAP was quoted at $720-$780/st FOB in the Eastern Cornbelt, down from last week’s $750-$795/st FOB range, with MAP reported at $715-$745/st FOB. Sources said the Cincinnati market was sold out of both DAP and MAP at midweek, with the last confirmed business at $750-$780/st FOB for DAP and $715-$720/st FOB for MAP.
Western Cornbelt:
DAP pricing was reported at $720-$770/st FOB in the Western Cornbelt, down slightly from last week’s $740-$795/st FOB, with the St. Louis market pegged in the $720-$750/st FOB range. MAP remained at $710-$735/st FOB in the region, with the St. Louis market reported at the $725/st FOB level.
California:
The California MAP market was pegged at $780-$800/st FOB/DEL in early May, up from a flat $780/st at last report.
Pacific Northwest:
MAP pricing in the Pacific Northwest was quoted at a firm $780/st FOB/DEL, up from the prior $760-$770/st range.
Western Canada:
MAP firmed to C$1,070-$1,110/mt FOB for May tons in Western Canada, up from C$1,060-$1,080/mt FOB in April. Delivered MAP moved to a reported high of C$1,150/mt, up from C$1,080-C$1,115/mt DEL.
“Prices continue to push higher, and quickly, as the market seems to be vastly under positioned, just as the US was a few weeks ago,” said one contact.
China:
With most offices closed this week for the Labor Day holiday, sources said there was no new DAP business conducted. The most recent estimated price of $585/mt FOB is projected to come off as the domestic DAP market wanes.
The government is also expected to make export policy changes that will allow for more DAP and MAP to be exported. The policy shift was rumored to have been put in place on May 1. So far, however, international traders have not yet seen or heard anything to confirm the change. Sources said the announcement will most likely be made next week, once everyone is back at work.
India:
Sources reported two 30,000 mt cargoes of Russian DAP sold to India at $542-$548/mt CFR, while an additional deal was reported at $540/mt CFR. These prices would suggest a netback in the low-$500s/mt FOB Russian port.
The current National Fertilizers Ltd. (NFL) DAP tender is reportedly seeing offers in the mid-$530s/mt CFR, although no awards have been made. Sources said they were not surprised by the falling prices for DAP. One trader said that further price drops were expected.
Brazil:
Prices shifted down to $555-$575/mt CFR for MAP. Sources said a that general feeling of oversupply – with more product on the way – justified the lower price expectations.
Rondonopolis was reported down to $670-$720/mt FOB ex-warehouse. The bearish attitude was strong enough to push back against sellers who used the bump-up in NOLA prices to try and move the Brazilian market in a similar manner. Buyers were having none of it, and kept bidding lower.