Previously in this series, we looked at the average prices for DAP (diammonium phosphate). In this part, we’ll look at the average prices for MAP (monoammonium phosphate). MAP is the second most used phosphate fertilizer after DAP.
MAP prices inch slightly lower
The average price for MAP in Brazil for the week ended March 18, 2016, inched slightly lower to $361 per metric ton, from $362 per metric ton in the previous week. However, MAP prices have bounced back since the low of $329 per metric ton in the week ended February 12, 2016, bringing some life to the lackluster fertilizer market.
Despite the recent rise in prices, the average prices for both DAP and MAP were lower than they were a year ago. The average MAP price of $361 per metric ton last week was 24% lower than the average price of $478 per metric ton in the corresponding week a year ago. However, the gap is narrowing.
Companies such as Mosaic (MOS), PotashCorp (POT), Israel Chemicals (ICL), and Agrium (AGU) produce phosphate fertilizers. You can invest in Mosaic through the SPDR S&P North American Natural Resources ETF (NANR), which invests about 1.6% of its portfolio in the stock.
Yearly price change
Despite MAP prices falling over a one-year period, they seem to be recovering from the low of $329 per metric ton in the second half of February 2016. MAP prices seem to be following the price trend of DAP at NOLA (New Orleans) and the US Corn Belt, indicating that demand is growing faster than supply.
This brings us to the topic of phosphate inventory, which we’ll look at next.