Global supplies of phosphates continue to tighten, with prices moving higher again last week. The Tampa DAP price rose another $25 per ton, as export sales continue out of Florida. “The international market continues to drive the domestic market here in the U.S., with producers taking product wherever they can get the highest price,” observes CHS product manager Tom Mulrooney.
Continued export demand, most recently from Latin America and Southeast Asia, and increasing input prices for producers have helped to push phosphate prices higher. Producers recently settled contracts with sulfur and ammonia suppliers and the prices of both inputs are up – sulfur by $60/ton, he notes. One of the biggest problems facing producers during the quarter will be a shortage of sulfur.
MAP is in even tighter supply than DAP for spring. A Russian vessel is due to arrive in the U.S. this month, with the asking price at $428 to $430 per short ton FOB.
“Producers now have very low inventories and the system has not yet positioned enough tons to supply the expected needs of the spring season,” says Mulrooney. “Time is running out. Dealers need to place orders in the next two to three weeks to ensure delivery in time for spring.”
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