Central Florida: Although summer fill on the river system was underway late last week, that was not the case for those who buy by rail from Central Florida.
Dealers – at least small independent ones – were holding fast to the belief that prices will fall, despite signs to the contrary. Summer fill prices on the river were up last week, and not much different from those for prompt.
In some areas farther to the north, frost was still a problem, despite a brief heat wave that swept in for a couple of days last week. A trader said the high price of seed corn was putting pressure on farmers there to hold off on planting to avoid the possibility of having to replant.
Producers were holding firmly to their $460/st FOB price for DAP, and some feared that that may be an indication of higher prices to come. However, there was no word from producers themselves on a Central Florida price hike.
Late last week, phosphate producers were in the process of settling contracts on new fourth-quarter sulfur prices, but the new price was not available.
The Central Florida DAP price remained unchanged last week at $460-$465/st FOB. CF Industries was posted at the $460/st FOB mark, and Mosaic was also at $460/st FOB. MAP was listed at a $20/st premium to DAP by Mosaic in Central Florida, about the same difference as from traders. However, MAP was virtually unavailable in Central Florida.
PCS Sales was selling at prices comparable to the market.
U.S. Gulf: In real estate, the three most important things to consider are location, location, and location. For the past few weeks, this has been true when it comes to NOLA phosphate barges as well.
Barges to be loaded within a week were selling for $10-$15/st FOB less than those already moving on the river system. Even then, location was the biggest factor in the price, regardless of adjustments for transportation.
Sources said a NOLA DAP barge to be loaded within a week at New Orleans could be purchased for about $480/st FOB, while those at or near St. Louis were available for around $490/st FOB, and a DAP barge at Cairo, Ill., on the Ohio River was selling for $495/st FOB. However, somewhat fewer NOLA DAP barges were traded last week compared to the previous week. In addition, sales of barges for delivery in June and July were running $475-$490/st FOB.
All of those prices were higher than the previous week, and about what terminal prices were a week or two ago, depending on the location. That meant warehouse prices were heading up to adjust for the higher barge cost.
Crop prices were mixed last week. Corn and wheat prices continuing their southerly movement, but soybeans improved a little. Prices for corn futures fell from $5.4725/bushel the previous week to $5.3775/bushel for December 2012. The corn price for December 2013 was $5.3625/bushel, decreasing from $5.4625/bushel the previous reporting period. Soybeans for November 2012 moved up to $13.85/bushel from $13.7475/bushel the previous week, and beans for November 2013 increased to $12.54/bushel from $12.5375/bushel a week earlier. Wheat for July 2012 fell to $6.305/bushel from $6.4425//bushel the week before, and wheat for July 2013 was listed at $7.005/bushel last week, down from $7.0575/bushel previously.
Based on a combination of actual transactions, bids, and offers, the prompt NOLA DAP barge price range for the week was $480-$495/st FOB, up from the previous week’s range of $470-$480/st FOB for domestic product.
Eastern Cornbelt: DAP pricing continued to inch upward, with steady demand reported. Sources quoted the dealer market at $515-$530/st FOB warehouses in the region, with the low reported in Illinois and the upper end in the Ohio market.
MAP was pegged at $525-$535/st FOB. Several sources noted the premium