Potash Prices Showed Stability for Week Ended August 25
Fortunately for fertilizer producers (XLB) PotashCorp (POT), Mosaic (MOS), Agrium (AGU), and Intrepid Potash (IPI), potash prices have offset some of the negative impact from nitrogen and phosphate fertilizers. Potash fertilizers have had a good run so far this year. Let’s see how they performed last week.
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Last week, which ended August 25, 2017, the US Cornbelt saw the steepest price increase in potash fertilizers. They rose 3.7% week-over-week to $230 per metric ton, from $222 per metric ton in the previous week. Last week’s price rise was a reversal from the previous week’s fall. Year-over-year, potash prices are now 9.0% higher than $210 per metric ton in the corresponding week a year ago.
In contrast, potash prices in Southeast Asia moved sideways last week to $248 per metric ton, continuing the 15-week streak. However, year-over-year, potash prices at this location were 3.0% higher.
Potash prices in Brazil also moved sideways to $265 per metric ton, continuing the 14-week streak. Year-over-year, potash prices in this region are higher as much as 15.0% from $231 per metric ton in the corresponding week a year ago.
Potash prices continue to display strength for potash producers and may explain why Intrepid Potash has emerged as one of the top gainers so far this year.
Next, let’s look at fertilizer affordability.