Central Florida: Prices on the Central Florida phosphate market remained flat last week thanks to a lack of new transactions. Rail-loaded DAP cars were called $435/st FOB based on Mosaic’s posted price, while product shipped by truck brought an added $5/st FOB. The dealer price was static at $445/st FOB for DAP.
As in recent weeks, sources called MAP unavailable in the region.
Traders continued to monitor prices on the NOLA barge market, which industry players considered uncomfortably close to Florida levels. Traders expected a downward price adjustment in Central Florida should NOLA DAP drift below $435/st FOB.
Florida rail transit saw minor delays when a CSX freight train locomotive derailed near Sanford, Fla., on Sept. 4. Two sets of tracks were closed while crews labored to return the locomotive to the rails, and no injuries were reported.
The price of DAP in Central Florida was $435-$440/st FOB, unchanged from the week before. MAP prices were posted $20/st FOB higher.
U.S. Gulf: Trading on the NOLA barge market was sluggish last week. Few physical trades were reported, but prices generally held steady in the range quoted in the previous report.
Freight continued to be a factor, and a number of buyers have all but given up on FOB pricing for the near term. Calculating net prices from DEL quotes was turning into a sport of sorts, and netbacks ranging from $435/st FOB through the low-to-mid $440s/st FOB were seen. Sources called the average transaction price around $339-$440/st FOB.
Traders described little price difference between open origin and domestic product. Open origin offers were roundly pegged at $435-$440/st FOB for the week. Domestic producers were said to be offering DAP in the $445-$455/st FOB range, but concluded domestic sales were reported to be comparable to imports. Again, freight played a significant role.
“Most of the import vessels were booked prior to the tight freight rates hitting,” one source said. Better freight costs on import barges meant a potentially enhanced netback relative to domestic product, another source reasoned, especially on domestic barges offered with uncompetitive shipping rates.
Market watchers were divided on the direction of the market. Some saw it subject to continued downward pressure, largely based on reduced demand from end-users contemplating the December corn crop’s price inching closer to $3.00/bushel.
Others pointed to low inventory levels nationwide as potentially sparking a market rebound. With grain prices causing farmers to wait until absolutely necessary to make large phosphate purchases, some traders anticipate an eventual run on inventory as growers rush to make last-minute buys.
Throw in a significantly lighter-than-expected fall import lineup – now estimated to total roughly two-thirds of the 900,000 mt of DAP, MAP, and TSP expected earlier in the season – and demand is likely to outstrip supply, those sources added.
Prices on the NOLA barge market were steady at $435-$443/st FOB, unchanged from the previous week. MAP prices dipped slightly, to $470-$475/st FOB from $475-$480/st FOB the week before.
Eastern Cornbelt: DAP warehouse prices were pegged in the $480-$490/st FOB range in the Eastern Cornbelt, with MAP quoted at $510-$530/st FOB, depending on location.
10-34-0 remained at $460-$480/st FOB in the region.
Western Cornbelt: DAP was unchanged at $480-$490/st FOB terminals in the Western Cornbelt, with MAP pegged in the $510-$530/st FOB range, depending on location.
Out of the Twin Cities and Catoosa, Okla., sources tagged the market at roughly $485/st FOB for DAP and $515/st FOB or higher for MAP.
10-34-0 remained at a nominal $480-$500/st