Central Florida: Central Florida traders continued to lament the lack of available MAP on the market, speculating that the product was instead being earmarked for much more lucrative offshore sales, where offers were said to remain well above the $500/mt FOB mark.
Logistics concerns weighed on the market as well, as inland grain repositioning from the current mammoth corn crop was reportedly tying up rail lines. The price of phosphates shipped by truck, already enjoying a roughly $5/st FOB premium to rail-loaded product, was expected to further increase in the months ahead.
Nearby DAP demand was light, however, so the issues weren’t as cumbersome as they will likely be come September, when late-summer buying is expected to hit its stride.
DAP prices on the Central Florida phosphate market were quoted in a range of $435-$440/st FOB, unchanged from the previous week, with truck-loaded product accounting for the upper end of the range. MAP was $20/st FOB over DAP, despite scant availability.
U.S. Gulf: Sources reported a particularly quiet week on the NOLA phosphate market.
Sources blamed the lack of trader demand on low interest from dealers and wholesalers. Retailers were said to have taken positions awaiting renewed interest from their farmer customers, while farmers were reportedly hesitant to make large fertilizer purchases while grain prices remain depressed.
“It is likely that barge activity will be quiet until we see farmer demand start to clean out all the length out there,” one source said. “Dealers and wholesalers won’t just continue to increase their length hoping and betting the farmer will come.”
Persistent logistics issues have also contributed to sputtering sales, and sources mentioned a “significant concern” regarding traders’ ability to procure timely barges. Continued river issues, coupled with a high volume of grain shipments currently on the river, have made barges “almost impossible to get,” a source said.
A well-documented run-up in the price of barge freight in recent weeks has also been a factor. Rates were said to be three times higher than normal in some instances, with storage and demurrage days and their associated costs rising in concert. Sources said rates could escalate even more in the near term.
Respective offer levels for September and October domestic product were put at $455/st and $465/st FOB, though sources said paper deals were available in the low $440s/st FOB, making those offers less than attractive.
Imported phosphates for September discharge were quoted in a range of $430-$440/st FOB. Traders with plans to import Chinese vessels worried that time was running short, sources reported, as loading delays caused by Typhoon Rammasun and persistent rains have delayed many vessels to the point of potentially arriving after the river’s close in mid-October.
U.S.-bound vessels were said to be pulling up anchor and getting underway as soon as possible despite being just partially loaded. With an average transit time of 38 days, plus long vessel lines at NOLA and an uncertain number of days needed for discharge and marketing, many traders felt that waiting indefinitely for ideal loading weather was a luxury they could not afford.
DAP sold on the river firmed to $445-$450/st FOB from the previous range of $442-$450/st. Mosaic’s posted price for September DAP was $455/st FOB.
MAP was reportedly commanding an additional $25-$35/st FOB over DAP, thanks to strong offshore demand.
Eastern Cornbelt: Sources pegged the DAP market at $485-$500/st FOB regional warehouses in the Eastern Cornbelt, with MAP reported in the $510-$530/st FOB range, depending on location.
The 10-34-0 market remained at $