P&KToday: Strong January Demand Supports P&K Pricing

February 27, 2014 10:13 AM
 

 

Potash, DAP and MAP prices all moved higher again this week.

Phosphate -- Despite the suggestion that many farmers may limit or even eliminate P&K applications due to declining production margins, restocking is picking up the pace around the United States and some early pre-plant applications are already underway in parts south. Agrium reports this month phosphate inventories declined 15% in January from December levels leaving current stocks roughly 20% below year-ago.

Globally, demand in India has been high with phosphate imports accounting for well over half of that nation's total December imports. There have been some loading problems due to high seas at Moroccan terminals, and while domestic product covers a strong percentage of DAP/MAP consumption, imported Moroccan P allows the U.S. market to breathe a little, lending fluidity to the national supply.

We are 80% filled on DAP and MAP for spring. The outlook calls for continued price increases in all flavors of phosphate so if you have not yet booked for spring needs, contact your preferred retailer today.

Potash -- Inventories are better here than in phosphate, but price strength is expected here as well. Agrium reports both domestic and export sales have been strong suggesting demand based price discovery has been completed. North American potash production in January '14 rose above that of December '13 by 31% and 44% above January '13 levels. That indicates producers foresee strong demand ahead, leading to higher prices.

Domestic potash sales figures reported by PotashCorp show a 47% increase in sales in January 2014 from the prior month and 76% above January 2013. This indicates that many believe potash is currently a value buy and despite lagging crop futures, recent strength in December futures may be encouraging growers to book P&K.

We are 80% filled on potash for spring. The outlook suggests potash prices were attractive to buyers in January and that has excited prices. Expect spring prices above today's. Here again, if you have not yet booked spring potash, get in touch with your preferred retailer today.

  • DAP $96.50 below year-ago pricing -- up $19.33/st on the week to $547.83/st.
  • MAP $90.55 below year-ago -- up $7.25/st this week to $553.45/st
  • Potash $117.38 below-year ago -- up $2.03/st this week to $466.78/st.
  • December 2014 corn futures opened 2 1/2 cents lower this morning than our last P&K Today at $4.65. 1/4. The national average corn basis firmed by 1/4 cent from last week to stand 2 1/2 cents over March futures. The national average cash corn price firmed 2 1/2 cents from last week to $4.58 1/2.

 

By the Pound --

DAP is 1 3/4 cents higher at 56 3/4 cents/lbP2O5; MAP is 1 cent higher at 53 cents/lbP2O5; Potash is up 1/4 cent on the week to 38 1/2 cents/lbK2O.

The following is an updated table of P&K pricing by the pound as reported to your Inputs Monitor for the week ended February 21, 2014.

P&K pricing by pound -- 2/27/2014

DAP $P/lb

MAP $P/lb
Potash $K/lb
Iowa
$0.53
$0.51
$0.40
Illinois
$0.56
$0.50
$0.38
Indiana
$0.57
$0.53
$0.38
Wisconsin
$0.52
$0.54
$0.36
Minnesota
$0.55
$0.50
$0.38
South Dakota
$0.63
$0.58
$0.39
North Dakota
$0.55
$0.56
$0.38
Nebraska
$0.57
$0.50
$0.43
Missouri
$0.57
$0.54
$0.39
Kansas
$0.58
$0.55
$0.40
Ohio
$0.60
$0.53
$0.38
Michigan
$0.59
$0.52
$0.36
Average
$0.56 3/4
$0.53
$0.38 1/2
Year-ago
$0.68
$0.61
$0.48

 


 

 

 

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