US DAP barge price hikes to $422/short ton

18 October 2007 12:37  [Source: ICIS news]

LONDON (ICIS news)--Domestic phosphate fertilizer prices have risen again in the US due to increased application in the Wheat Belt and more reselling of barges between traders, sources in the industry said on Thursday.

 

Mosaic, the US’s largest producer company, indicated it had sold barges of diammonium phosphate (DAP) fertilizer for prompt shipment at $415/short ton (€291/short ton) FOB (free on board) Nola (New Orleans).

 

Traders reported the producer was now targeting $425/short ton up to $450/short ton FOB Nola by January 2008.

 

Traders reported reselling many barges at prices up to $422/short ton.

 

Sources in the southern plains of the US (including Oklahoma, Texas and parts of Arkansas) reported a sharp pickup in DAP for application in the Wheat Belt this week in order to maximise wheat yields.

 

Increased application to corn and soybean crops was also evident in the same area, with better moisture conditions understood to be more conducive for planting, traders added.

 

DAP prices have almost doubled through 2007, from $240-243/short ton FOB at the beginning of the year, due to strong commodity prices plus increased corn acreage and demand for biodiesel.

 

($1 = €0.70)

By: Mike Nash
+44 20 8652 3214

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