Central Florida: Thin supply from Florida producers pushed prices up last week, sources said. Traders quoted DAP rates in a range of $435-$440/st FOB for railcars, while trucks bound for Alabama and Georgia commanded $445/st FOB.
Several sources reported difficulty in obtaining prompt product in the region. Producers previously said phosphate availability at Central Florida would be tight through April, and some in the market were quoted mid-March shipping dates for “prompt” material last week.
Sources have been blaming a strong Tampa export market for Central Florida’s supply difficulties. With exports taking a breather last week, however, producers were reportedly casting an eye toward resupplying the Midwest instead. “They’re concentrating on sending unit trains to warehouses right now,” one market source said.
The price of DAP on the Central Florida phosphate market was quoted at $435-$445/st FOB, up from $430-$440/st FOB at last report. The MAP premium was steady at $20/st FOB above DAP.
U.S. Gulf: Trading on the NOLA barge market slowed for the week, sources said, hampered by winter weather and slower terminal demand.
Up to a foot of snow was reported in parts of the Midwest. Despite the drag on short-term business, some touted the precipitation’s silver lining. “It’s a mess everywhere in the Midwest,” said one market watcher, “but moisture is good. We need the moisture.”
Sources quoted actual DAP transactions for the week in a range of $440-$445/st FOB. MAP fell slightly to a range of $442-$445/st FOB.
The weather was just one factor in the market’s softness, some said. “Everyone’s just waiting at this point,” one contact noted. Depending on weather patterns in the coming weeks, the spring phosphate season could lurch into gear at any time.
“It could begin as soon as now in an early year, or as late as mid-March,” said another source. “There’s a foot of snow today in Iowa, but last week it was in the 60s. These late snows can melt in a day or two of good weather, so hopefully we’ll start to see some barge movement.”
Some pointed to stabilizing input costs as a potential green light for the market. “Sulfur going up doesn’t help,” said one contact, “but the drop in ammonia is good. That should help get things going.”
Others, however, noted a correlation between the market’s current stalling point shy of the $450/st mark and a similar lull experienced in the buildup to the fall 2014 season. “Just like last fall, the higher we get toward $450, we hit a wall,” one trader said. “It could just be a new reality with grain prices what they are.”
DAP traded on the NOLA barge market softened to a range of $440-$445/st FOB from the previous week’s $442-$447/st FOB. MAP was called $442-$445/st FOB, a slight decrease from the previous week’s $442-$446/st FOB.
Eastern Cornbelt: DAP remained at $470-$490/st FOB regional warehouses in the Eastern Cornbelt, with the low at Cincinnati and the upper end FOB Maumee, Ohio. MAP was $15-$20/st higher than DAP, depending on location.
10-34-0 was unchanged at $540-$550/st FOB in the region.
Western Cornbelt: The DAP market in the Western Cornbelt was reported at a solid $475/st FOB out of most regional warehouses last week. MAP remained at a $15-$20/st premium to DAP, where available, but several sources reported tight MAP inventories in the region.
The weather conditions made for very slow activity in the region. A southern Missouri contact reported limited movement, noting that “some dealers are finally filling up some space” in p