What’s Happening with MAP Prices as of July 14?
MAP (monoammonium phosphate) prices in Brazil continue to pressure phosphate players (XLB). As Mosaic (MOS), PotashCorp (POT), Agrium (AGU), and Israel Chemicals (ICL) gear up to release their latest quarterly earnings, we’re starting to get a glimpse into these companies’ expectations for earnings going forward.
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Last week (ended July 14), MAP prices in Brazil continued to drift lower, falling 84 basis points from $358 per metric ton to $355 per metric ton last week. This trend is not surprising when we see how prices have tracked following the peak of $400 per metric ton earlier this year. Last week’s prices now stand almost 13% lower than that peak.
While these price movements are a concern for phosphate producers, Brazil remains a bright spot on the agribusiness map. There are expectations for strong demand coming from Brazil, and the country’s improving political environment has added confidence.
Remember, while last week’s prices are far short of their latest peak, prices are still almost 8% higher than their low point of $328 per metric ton toward the end of last year.
Now let’s take a look at potash fertilizer prices.