How Potash Prices Moved Last Week

Potash prices remained firm for the week ending December 1. In most of the regions discussed below, the weekly prices of potash fertilizers were flat to positive.

Last week, the granular potash prices in the Cornbelt region of the US (MOO) rose ~1.2% week-over-week to $234 per metric ton from $231 per metric ton. Year-over-year, prices at this location rose 4% from $253 per metric ton.

Similarly, in NOLA (New Orleans) the granular potash prices rose by 45 basis points week-over-week to $204 per metric ton from $203 per metric ton, while the prices last week rose 8% year-over-year from $209 per metric ton.

Outside the US, the granular potash prices were flat week-over-week at $276 per metric ton. However, the potash prices at this location were up by as much as 17% year-over-year from $236 per metric ton. The standard grade of potash in the Southeast Asia location also rose by as much as 78 basis points week-over-week to $259 per metric from $257 per metric ton.

The stable potash prices are not surprising given the tight supply and companies like PotashCorp (POT), Mosaic (MOS), Agrium (AGU), and Israel Chemicals (ICL) being forward committed.

The potash prices are certainly higher year-over-year and companies such as PotashCorp stand to benefit given that the company has managed to lower its cost of production significantly. An increase in potash prices from here may translate into higher margins for the company and push the stock of companies with large exposure to potash fertilizers higher.

In the concluding part of this series, we will discuss fertilizer affordability.