Central Florida: Inventories remained low last week and that will continue despite the lack of domestic sales, primarily because of the export schedule. Domestic sales were not expected to increase until September at the earliest.
The DAP price range for Central Florida was unchanged last week at $490-$500/st FOB. CF’s posted price was $500/st FOB and Mosaic was also at the $500/st FOB mark, but producers were not making spot sales of prompt rail cars. Truck sales by traders accounted for the low end of the range.
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 drought continued to put stress on those who use the Mississippi River to move goods. Rain in the Ohio Valley the previous week briefly allowed some unloading on the Lower Mississippi and feeder waterways, as levels moved up six-to-seven feet for a few days. Those levels quickly retreated, however.
North of St. Louis, the lock system kept the river navigable, but the Lower Mississippi was difficult to maneuver, and many docks were unable to load or unload barges.
Vessels were being lightened to reduce the probability of running aground, and the time to move a barge to its destination was being extended by an extra week or more. Freight costs could become expensive before the river returns to normal.
Crop prices were all up last week in comparison to the previous week. The corn price for December was $8.2575/bushel, up from $7.9525/bushel a week earlier. December 2013 corn was $6.4625/bushel, increasing from $6.3125/bushel the previous reporting period. For November 2012, soybeans rose to $16.235/bushel from $16.1675/bushel the previous week, and beans for November 2013 increased to $12.825/bushel from $12.695/bushel a week earlier. Wheat for July 2013 rose to $8.55/bushel from $8.325/bushel the week before, and wheat for July 2014 was listed at $7.93/bushel last week, up from $7.905/bushel the previous week.
The low water levels continued to take a toll on NOLA DAP barge prices. Buyers who use docks on the Lower Mississippi were getting rid of their positions rather than having to pay for fleeting their loads. NOLA DAP barges in that situation were selling at about $5/st less than other offers being made.
Dealers were pleased they finished the season with virtually empty bins, but most have not restocked for the fall season. Part of the reason was uncertainty about what farmers in drought stricken areas would want for the fall. Despite a weakening trend in the NOLA DAP barge market, terminal prices were holding steady at around $540/st FOB, although business was slow.
The prompt NOLA DAP barge price range for the week drifted a bit to $500-$505/st FOB, which was down at the top of the range from the previous week’s $500-$510/st FOB. Prices were weaker at the end of the week. MAP was running $30/st FOB higher than DAP.
NOLA DAP barge prices were poised to fall below $500/st FOB, and that could affect consumers’ views of when to buy.
Eastern Cornbelt: Most sources quoted the DAP market at $545-$550/st FOB in the Eastern Cornbelt, with MAP $20/st higher. 10-34-0 was unchanged at $525/st FOB in the region.
Western Cornbelt: DAP was pegged at $540-$545/st FOB regional warehouses, with the low out of the St. Louis market. MAP was quoted at $560-$565/st FOB in the Western Cornbelt last week. 10-34-0 remained at $490-$525/st FOB in the region.
Southern Plains: DAP was pegged at $540-$545/st FOB Catoosa, Okla., with MAP roughly $20/st higher. The 10-34-0 market was pegged at $525-$535/st FOB in the Southern Plains region.
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