Central Florida: The eastern U.S. remained drought free last week, and the widespread rainstorms probably had a lot to do with that.
Dealers continued to put buying phosphate and other fertilizers on the back burner last week, and that was likely to continue until the fall season kicks into gear – sometime in late September or early October.
Railcar sales out of Central Florida were done on the basis of contracts only, and no new prompt spot sales were found.
The Central Florida market price range last week continued unchanged at $425-$435/st FOB. Large customers get the best prices. Although no new spot sales were found, sources indicated prices were becoming softer and may decline, as they have on the river system. PCS Sales was selling at market prices out of Aurora and White Springs. A source said the recent DAP price from Aurora, N.C., was $485/st FOB. MAP continued to bring a premium of $20/st FOB over DAP at Central Florida.
U.S. Gulf: As rain has tapered off in the Midwest, water levels on the Mississippi River have begun to follow the same course – falling. The problem was most noticeable on the lower portion of the river.
A source said that if that trend continues, docks along the river will have to shut down, which would create the same kind of problems that happened earlier this year, before the heavy rains began.
Last week, northern Texas, Oklahoma, Kansas, parts of Arkansas, and eastern Louisiana got precipitation that helped ease the drought conditions there. However, the rest of Texas, northern Louisiana, and southern Arkansas went without, which worsened the drought in those areas.
Meanwhile, some areas, such as southern South Dakota and northern Nebraska, got some rains, but eastern Iowa, eastern Illinois, western Indiana, northern Michigan, Minnesota, and parts of Wisconsin have been experiencing problems and have not gotten the rain they needed, although slightly cooler weather was easing the blow.
While the USDA was still predicting record crop yields, an early frost or lack of rainfall could cut into the harvest. That would push up crop prices.
On the futures market, crop prices were mixed. Corn for September rose from $4.815/bushel the previous week to $4.875/bushel last week. For December 2013, corn was $4.645/bushel, a decrease from the $4.7225/bushel for the previous reporting period. Corn for December 2014 was posted at $4.9975/bushel, less in comparison to $5.0875/bushel the previous week.
Soybean prices for November 2013 were $12.8675/bushel, higher than the $12.655 bushel a week earlier. Beans for November 2014 were posted at $11.84/bushel, lower than the $11.905/bushel a week earlier. Wheat for September 2013 was $6.9425/bushel, lower than the week-ago $7.03/bushel, while wheat for July 2014 was listed at $6.9475/bushel, a decrease in comparison to $7.0625/bushel the previous week. The wheat price for July 2015 was posted at $7.045/bushel, down from $7.155/bushel at the last report.
Although the number of NOLA phosphate barges on the river system remained very low last week, prices continued to fall. Sources said part of the problem was the bear market for potash and urea, as well as the generally held belief that prices will go down. That was despite the fact the fall season was just around the corner and a last minute rush will push prices higher, and do so fairly quickly. The bear export market was also a likely factor for lower prices on the river system.
"They (dealers) would rather get caught in an up market than a down market," one trader said. "They would rather make less (if the market goes up) than lose more (if the market goes down.)"
Paper prices for NOLA DAP barges were in the $370s/st FOB late last week for deliveries in September and October. A couple of sources said they exp