Will MAP Prices in Brazil Keep Falling?
MAP (monoammonium phosphate) prices in recent weeks have fallen from their peak of $400 in March 2017, and there are no signs of them stopping. Weakness in MAP and DAP prices remains an area of concern as signs of recovery are nowhere in sight. Recently, PotashCorp (POT) released its 2Q17 earnings, and its management gave a subdued outlook for phosphate fertilizers (MXI). We’ll learn more about the outlook on phosphate fertilizers once Mosaic (MOS), Agrium (AGU), and Israel Chemicals (ICL) release their earnings.
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For the week ended July 28, MAP prices in Brazil fell as much as 0.85% week-over-week to $348 per metric ton from $351 per metric ton a week ago. Last week’s prices are almost 13% lower than the peak of $400 per metric ton earlier in March this year.
Last week’s downtrend, which was an extension of the previous week’s downtrend, sparks a concern about whether prices are headed to their lows. MAP prices had hit the bottom at $328 per metric ton earlier in December 2016. The current price levels are just about 6% higher compared to this low.
The agribusiness market in Brazil has a firm demand for fertilizers but has been overshadowed by political uncertainties in the country. We’ll continue tracking developments in weekly MAP prices in Brazil on Market Realist.
Next, we’ll discuss potash prices.