Tampa: There was no real change in the supply and demand scenario last week, but the quarter will end next week. However, a source said a settlement for the second quarter will probably not come until near the end of April. By that time, the picture should become clearer.
Phosphate producers held back on full-scale production during the first quarter of the year, which was not a surprise because their markets were very slow and sales were down. However, spring has sprung and farmers were in the field last week, and fertilizers, including phosphate, will be going on the ground. An early spring generally means a good season, so sales should begin to increase during the next few weeks.
Mosaic has been buying molten sulfur at below market prices and putting it on the ground in Texas. That – and full tanks – will help improve their bargaining position.
Vancouver: Spot prices in China have been on the rise, but that may not continue much longer, because phosphate sales from there may not be that competitive in the near future. However, quarterly contracts were up for renewal at Vancouver, and that may help sellers.