tag:blogger.com,1999:blog-2335748440449035592.post3570376621925862432..comments2008-04-04T11:21:10.910-04:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2335748440449035592.post-90790669268553562152008-04-04T11:21:00.000-04:002008-04-04T11:21:00.000-04:00http://www.fertilizerworks.com/html/market/TheMarket.pdfdhttp://www.blogger.com/profile/08500359981802753931noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-73498870893054930512008-04-04T11:20:00.000-04:002008-04-04T11:20:00.000-04:00DAP at $1,200/Tonne<BR/><BR/> The phosphates market is dominated by news this week that three Indian buyers have<BR/>agreed initial quarterly phosphoric acid contracts with OCP at $1,985/tonne CFR, an increase of nearly $1,420/tonne on 2007-08 yearly contracts.<BR/>Significantly, the deal is for a three month contract with 30 days’ credit rather than a yearly agreement, with OCP reluctant to lock itself into a longer-term arrangement while facing rising sulphur costs.<BR/>With other contracts likely to follow soon at the same level and South African acid automatically matching the price, in the short term, Indian DAP producers might know where they stand in terms of continuity of acid supply, but this will do little to suppress DAP import demand. Indeed, Indian importers have reportedly been told by DoF officials to procure as much DAP as they can, with food production on top of the political agenda.<BR/>Both MCFL and IFFCO have issued additional DAP tenders this week.<BR/>Elsewhere, the market has been relatively quiet. PhosChem has sold 30,000 tonnes of mostly MAP into Brazil this week at prices netting back to $1,190-1,200/tonne FOB. A 30-day truce has been called between farmers and the Argentinean government to allow soya harvesting.<BR/>This may pave the way for more DAP/MAP imports.<BR/><BR/>Pakistan will need to examine its subsidy policy but, like in India, importers want to line up more DAP as soon as is practicable to future-proof themselves against further dramatic price rises.<BR/>Demand in South Africa is also emerging with DAP/MAP sold there this week. Ethiopia has also issued a tender for 75,000 tonnes of DAP although, as it is quite late in the season, it remains to be seen whether local importers will participate.<BR/>China will gradually make some phosphates available for export from May onwards, but regional markets are likely to be the main recipients. There are reports this week that the government may extend its export duties on phosphate rock and introduce a tax on exports of phosphoric acid.<BR/>Russian producers are all sold out through April, while OCP has made no new sales this week and still has April availability. It is currently revising offer prices.<BR/>North America<BR/>In the US, PhosChem has sold 30,000 tonnes of mostly MAP with some DAP at prices<BR/>netting back to 41,190-1,200/tonne FOB. MissPhos tonnes are not being actively offered in the market at present.<BR/>Domestically barges are fleeting at Rosedale due to high water flows as water is released from reservoirs. The current flow rate is nearly 140,000 cubic feet/second on some parts of the river system, three times the normal level and considered too dangerous for river navigation.<BR/>DAP wheat application is also yet to begin in some regions but demand for corn in areas such as Nebraska and Iowa is strong. Parts of east Oklahoma have been very wet this week.<BR/>The static domestic market is encouraging barge buying for the more lucrative export market. Barges have been bought at up to $920/short ton FOB Nola, representing very profitable export business with Tampa at $1,150-1,200/tonne FOB.<BR/>Mosaic has announced a new price of $1,020/short ton for barges but has yet to sell at this level.<BR/>In Central Florida, Mosaic has sold rail cars at $950/short ton FOB.dhttp://www.blogger.com/profile/08500359981802753931noreply@blogger.com