MOP (muriate of potash) is the key potash fertilizer (XLB) used globally. Like fertilizer prices, MOP prices have fallen significantly over the years. Falling potash prices had a negative impact on PotashCorp (POT) in 4Q16.
PotashCorp’s recent earnings showed how painful the recovery has been. However, producers see positives in 2017 with its inventory running low. Read What 2017 Could Hold for Potash Producers to learn more. Let’s see how potash prices performed last week.
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For the week ending March 17, 2017, potash prices were broadly flat at the above three locations. Potash prices continued to show weakness in the potash environment. In the US Corn Belt, average weekly granular potash prices were flat at $237 per metric ton week-over-week.
Similarly, standard MOP prices in Southeast Asia were flat at $245 per metric ton. Average weekly prices in Brazil remained flat at $251 per metric ton week-over-week.
Positive moves in potash prices are key to potash producers including Intrepid Potash (IPI), Mosaic (MOS), and Israel Chemicals (ICL). These companies faced severe weakness in the market in 2016. On average, potash prices rose 6% from the same week in 2016.
Next, let’s look at how the Fertilizer Affordability Index performed last week.