Why Did MAP Price Trends Reverse in Brazil?
Monoammonium phosphate prices
MAP (monoammonium phosphate) is the second-most-used phosphate fertilizer after DAP (diammonium phosphate). Over the last few weeks, MAP prices have steadily trended higher in Brazil due to the improved environment for agribusiness products. Let’s see how MAP prices performed for the week ending March 17, 2017.
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Prices fell in Brazil
In the week ending March 17, MAP prices reversed their trend after the recent surge. Average MAP prices in Brazil fell 1.3% to $395 per metric ton from $400 per metric ton the previous week. The recent uptick in MAP prices is ~11% higher from $361 in the same week a year ago.
MAP prices have been recovering and aren’t above the low point of $329, as you can see in the above chart. The recovery started late last year—a positive factor for producers, as noted in their recent earnings calls.
For indirect exposure to these companies, you could consider the VanEck Vectors Agribusiness ETF (MOO). MOO invests about one-third of its portfolio in agricultural chemicals.
In the next part, we’ll look at potash fertilizer prices—the third key crop nutrient after nitrogen and phosphate.