Previously in this series, we discussed the average prices for DAP (diammonium phosphate). In this part, we’ll discuss the average prices for MAP (monoammonium phosphate). MAP is the second most used phosphate fertilizer after DAP.
The average price for MAP in Brazil for the week ending March 4, 2016, rose to $359 per metric ton compared to $356 per metric ton a week ago. However, MAP’s price in Brazil reached a low of $353 per metric ton during the same week.
Similar to the average price of DAP, the average price of MAP has also been falling over a one-year period. When comparing the average price of $359 per metric ton for the week ending March 4, 2016, to the corresponding week a year ago, MAP’s price has fallen by as much as 25% from $479 per metric ton.
Despite MAP’s price falling over a one-year period, it seems to be recovering from a low of $330 per metric ton as of the second half of February 2016. This seems to be in following with the price trend for DAP, which indicates that demand is growing faster than supply. This is positive for Mosaic Company (MOS), Isreal Chemicals (ICL), PotashCorp (POT), and Agrium (AGU), all of which have operations in Brazil.
You can also access some of these companies through the iShares U.S. Basic Materials ETF (IYM). IYM invests about 12% of its holdings in agricultural chemical companies.