Central Florida: Spot sales of prompt phosphate railcars from Florida were absent again last week, and that may continue for several more weeks. A few truck sales from traders who had long positions were selling below the previous week’s range by about $10/st FOB.
Prompt spot sales of railcars from Central Florida will probably not begin until September, and may be slow even then due to low inventories. Export was taking a huge chunk out of production.
The DAP price range for Central Florida widened slightly to accommodate truck sales by traders. The range moved from a flat $500/st FOB to $490-$500/st FOB. CF Industries’ posted price was at the $500/st FOB mark, and Mosaic was also at $500/st FOB.
MAP continued to sell at a $20/st premium to DAP 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: The Ohio Valley received some rain last week, but devastating drought conditions persisted in the Midwest in late July. According to the U.S. Drought Monitor on July 31, drought conditions ranging from moderate to exceptional extended from California west to the Eastern Cornbelt, and from the Dakotas south to Texas.
The other problem has been low water levels on the lower Mississippi River and other waterways in the region. As a result, many river facilities were unable to load or unload. The main channel was still running at least nine feet, but barge traffic was slow. Mosaic said it was not having any loading problems at its facility at Donaldsonville.
The low water level was also hitting the fertilizer industry. Some with positions faced a choice between paying for fleeting their phosphate barges or selling at a price lower than they would have received at their warehouses, and they were deciding to sell now. That was putting downward pressure on the market.
Late last week, the futures market showed price gains for corn, soybeans, and wheat. The corn price for December was slightly higher than a week earlier, moving to $7.9525/bushel from $7.8375/bushel a week earlier. The corn price for December 2013 was $6.3125/bushel, increasing from $6.23/bushel the previous reporting period.
For November 2012, soybeans rose to $16.975/bushel from $15.985/bushel the previous week, and beans for November 2013 increased to $12.695/bushel from $12.6625/bushel a week earlier. Wheat for July 2013 rose to $8.325/bushel from $8.1125/bushel the week before, and wheat for July 2014 was listed at $7.905/bushel last week, up from $7.4475/bushel the previous week.
Phosphate sales tend to be slow at this time of year normally, and the drought and water levels were not an inducement to buy last week. Only a few transactions were found. MAP was said to be in short supply last week, with the price running around $530-$535/st FOB.
The pricing range for prompt NOLA DAP barges was $500-$510/st FOB, which was down slightly at the top of the range from the previous week’s $500-$512/st FOB. Prices were weaker at the end of the week.
Eastern Cornbelt: Most sources quoted the DAP market at $545-$555/st FOB in the Eastern Cornbelt region, with MAP $20/st higher. The 10-34-0 market was pegged at the $525/st FOB level in the Indiana market last week.
Western Cornbelt: DAP remained at $545-$550/st FOB regional warehouses, with MAP quoted commonly at the $565/st FOB mark. 10-34-0 pricing continued to slide in the Western Cornbelt, with sources quoting the dealer market at $490-$525/st FOB in the region last week.
Agrium’s phosphoric acid postings for Aug. 1 included $950/st rail-DEL for both SPA and MGA in Iowa, Nebraska, Colorado, Kansas, New Mexico, Oklahoma, and Texas.
Northern Plains: DAP was quo