Linville: Florida’s Phosphate Production Impacted by Hurricane Milton
Josh Linville, Vice President of Fertilizer with StoneX. Photo: C.J. Miller / Hoosier Ag Today.
With 62 percent of the ammonium phosphate produced in the U.S. coming from Florida, there is no doubt that a storm the strength of Hurricane Milton would have an impact on production.
“Unlike most hurricanes that generally sideswipe the Tampa region, Milton took a direct shot going an ‘unnatural’ west to east path,” says Josh Linville, Vice President of Fertilizer with StoneX Group. “[The hurricane] came ashore as a Category 4 with storm surge expected to be 10 – 15’. This was as bad as it gets for the Tampa region and local phosphate production facilities. Fortunately for the phosphate market, a last-minute shift south appears to have saved the worst. Obviously terrible for those in the new direct path, but from a fertilizer perspective, good news.”
Even though Linville doesn’t know the extent of damage, he says they were built by engineers who knew storm capabilities in the region and were backed by well-funded companies.
“These facilities were built well. However, that is what they can control on their grounds. What they need to be concerned with is electricity and water returning to normal. We also must wonder how long until workers return. At the end of the day, helping friends and family trumps work so a certain amount of downtime will occur and will draw down expected supplies just before the start of widespread fall application,” he says.
Linville added that it doesn’t appear that the storm caused the worst-case impact on the market as could have happened, the phosphate market is still tightly supplied due to global issues.
“China, historically the world’s largest DAP/MAP exporter, continues to see export volumes falling behind normal. India, historically the world’s largest importer of phosphate, continues to work to rebuild stockpiles for domestic use. So, the world’s biggest supplier is scaling back while the biggest demand is catching up. Continue to help support price ideas, which in our opinion, is still a bigger situation that Hurricane Milton,” says Linville.
Graphic courtesy of StoneX Group, Inc.
