Are Potash Prices Beginning to Lift?
Similar to the fertilizer prices that we covered so far in this series, potash (muriate of potash) prices have also fallen significantly over the years. This trend has put pressure on existing companies to justify their expansion costs and maintain their margins.
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Potash prices in the US Corn Belt region appear to have reversed their downward movement. Last week, average weekly potash prices rose by another 41 basis points to $220 per metric ton from a week ago. Similarly, prices in Brazil stood at $235 per metric ton up 43 basis points from a week ago.
However, prices at the other two locations in the above chart remained unchanged from one week previously. Prices at the Vancouver location remained unchanged at $220 per metric ton. Similarly, prices in South East Asia remained unchanged over the previous week at $242 per metric ton for the week ending September 30.
Average potash prices at the above four locations have fallen as much as 23% over the same period last year.
Keep checking for this weekly series to track the fertilizer prices that are key for companies like Mosaic (MOS), PotashCorp, Agrium, CF Industries (CF), and Intrepid Potash (IPI). Meanwhile, you can always visit Market Realist’s Agricultural Fertilizer page for more details on these individual companies.