Central Florida: Inclement weather in the Southeast kept the DAP market at a relative standstill last week, with last done called in a range of $440-$450/st FOB.
However, a number of sources believed DAP could be had for as low as $435/st FOB for trader-offered tons, and up to $450/st FOB for truck-loaded product. With a number of traders said to have inventory obtained as far back in the market cycle as the $420s or $430s/st FOB, some were reportedly willing to offer below-market. “Prices are all over the board,” said one observer.
Additionally, the recent softening of NOLA DAP barges has reduced buyer willingness to bid up to the top of the range. “I’m not saying it’s easy to find $435/st DAP,” said one contact, “but nobody’s in a hurry to pay $450/st either.”
The Central Florida DAP market was called in a range of $440-$450/st FOB. MAP was quoted in the $460-$470/st FOB range.
U.S. Gulf: The NOLA barge market remained quiet last week thanks to protracted harsh weather in the South and Midwest.
DAP prices slipped for a second week in the low-volume environment, and were quoted in a range of $435-$442/st FOB. Several market players reported the average transaction at $438/st FOB, with unconfirmed rumors of a $433/st FOB barge trading hands. MAP offers were quoted at $437-$442/st FOB, and March producer tons were called $450/st FOB for both DAP and MAP.
Although nearby barge transactions were reportedly few and far between, a handful of warehouse sales in the Inola, Okla., area inspired optimism in some traders that the market could be on the verge of a turnaround. “There’s a light at the end of the tunnel,” said one contact. “Terminal sales are up, and the 10-day (weather forecast) looks fantastic.”
Another source commented that temperatures in the Midwest were supposed to reach the 50s or 60s next week, so “guys are buying in advance, hoping there’s not another cold front behind.”
Imports continued to rattle the market, however, with at least one Moroccan Panamax vessel slated for imminent arrival, likely on March 13 or 14, according to one source. A second vessel was reported to have left port last week with an estimated March 24 arrival date.
The vessels were in a race against spring, noted one contact. Should they arrive too soon, the market will be flooded with supply.
“I think (the vessels) are going to hit at the right time,” said another source, adding that the effect on the market will also depend on the ratio of DAP to MAP. “I’m more confident the market will be able to handle the DAP,” he said, “but the MAP, I’m not so sure. Again, it depends on how much they have on board.”
The NOLA barge market softened slightly to a range of $435-$442/st FOB from the previous week’s $435-$444/st FOB. MAP was called $437-$442/st FOB, down from $438-$445/st FOB the week before.
Eastern Cornbelt: DAP was quoted at $480-$490/st FOB most regional warehouses in the Eastern Cornbelt, with MAP $5-$15/st higher, depending on location.
10-34-0 was tagged at $550-$560/st FOB for very limited tons in the region.
Western Cornbelt: DAP pricing was steady at $475-$480/st FOB warehouses in the Western Cornbelt, with MAP quoted in the $480-$490/st FOB range.
The Inola, Okla., market was reported at the $475/st FOB level for both DAP and MAP on the low end last week, with reports of a pickup in terminal sales thanks to an improved weather outlook in the Southern Plains region.
10-34-0 pricing remained at a firm $545-$560/st FOB for the last tons sold in the Western Cornbelt, but inventories were critically low. Agrium’s