Central Florida: With the export phosphate market paying a premium, NOLA barges reaching around $500/st FOB, and inventories remaining low, phosphate producers in Central Florida were holding firm to their price for Central Florida DAP.
A trader said it was virtually impossible to buy from a producer in Central Florida, pay for the rail cost, and make a profit. Meanwhile, dealers were holding firm to the belief that prices will go down, despite signs to the contrary.
Late last week, CF was holding firm to its list price. Mosaic was posted at $5/st FOB less, but had “nothing in its quiver,” a trader said he was told. The alternative has been to find a terminal that has a supply of phosphate purchased before prices started going up, and use that to make sales by truck, the trader said.
The Central Florida DAP price range was $475-$480/st FOB last week, up slightly from $470-$480/st FOB the previous week. CF Industries posted its list price at the $480/st FOB mark, and Mosaic increased its price to $475/st FOB. MAP continued to sell at a $20/st premium to DAP in Central Florida, about the same difference as from traders, but was essentially unavailable in Central Florida. PCS Sales, which produces MAP at its White Springs facility in North Florida, was selling at prices comparable to the market.
U.S. Gulf: During the previous week, prices for forward sales of phosphate pushed above the range for prompt sales, which was interesting in itself. Previously, prompt was bringing a premium.
Dealers, especially small dealers, still believed last week that the price would come down in May, but there was nothing to back that belief up. Instead, prices for forward sales from June into September were commanding as much as $10/st FOB above a prompt NOLA DAP barge.
Several sources said the number of phosphate barges on the river last week was low. “Everyone is tight,” said one. However, the spring season was coming to a close, and those buying were looking toward fall. Overall, prompt sales last week were down from the previous week, and that will likely continue to be the pattern.
The biggest driving force for higher prices has been the export market, and that will continue for the next couple of months. Terminal activity was down last week as farmers and dealers were trying to wrap up the planting season. Prices at terminals will have to increase once the lower-cost product in bins has been sold and replaced at current costs.
Crop prices were mixed last week. Prices for 2012 corn futures were lower, falling to $5.295/bushel for December, compared with the previous week’s $5.34/bushel. The corn price for December 2013 was $5.395/bushel, however, increasing from $5.35/bushel the previous reporting period. Soybeans for November 2012 moved up to $13.6775/bushel from $13.58/bushel the previous week, and beans for November 2013 increased to $12.35/bushel from $12.30/bushel a week earlier. Wheat for July 2012 tumbled to $6.155/bushel from $6.33//bushel the week before, and wheat for July 2013 was listed at $6.96/bushel last week, down from $7.005/bushel the previous week.
The prompt NOLA DAP barge price range for the week moved to $485-$500/st FOB, compared with $485-$495/st FOB the previous week. MAP barge prices were about the same as DAP last week. NOLA DAP barge prices for forward sales from June into September were in the $505-$510/st FOB range.
Eastern Cornbelt: DAP remained at $515-$525/st FOB regional warehouses, with MAP pegged in the $525-$540/st FOB range in the Eastern Cornbelt. 10-34-0 was unchanged at $700-$725/st FOB in the region.
Western Cornbelt: Phosphates and potash were going down in preplant applications on soybean ground in the region in early May. DAP was quoted at a solid $520/st F