Phosphate Prices Were Flat to Negative Last Week
The week ending March 17, 2017, was mostly flat to negative for DAP (diammonium phosphate). Phosphorus fertilizers (MXI) are becoming more important as the awareness of balanced NPK (nitrogen, phosphorus, and potassium) fertilizer application grows. The most common phosphorus fertilizers are ammonium phosphates such as DAP and MAP (monoammonium phosphate).
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For the week ending March 17, average DAP prices at the above four locations fell by 84 basis points. Prices in the NOLA (New Orleans) region fell 3.4% to $316 per short ton, or $287 per metric ton, week-over-week.
DAP prices in Tampa Bay were flat week-over-week at $375 per metric ton. Similarly, DAP prices in Central Florida stayed at $350 per short ton, or $318 per metric ton, week-over-week.
Average DAP prices at the above three locations fell 1.0% YoY (year-over-year). Mosaic is one of the largest phosphate producers in North America. Rising prices are positive for companies such as PotashCorp (POT), Agrium (AGU), and Israel Chemicals (ICL), which also produce and distribute phosphate fertilizers.
Morocco has the largest phosphate rock reserves. Its average prices were flat week-over-week at $386 per metric ton. Morocco’s prices have fallen 3.0% YoY.
Ammonia, natural gas, and phosphate rock are the key feedstock materials used for producing DAP and MAP. Their prices impact phosphate fertilizer producers.
In the week ending March 17, phosphate rock prices in Morocco were flat at $94 per metric ton week-over-week. However, they were ~19% lower YoY. In the next part, we’ll look at MAP prices in more detail.