Diammonium phosphate prices
Ammonia is used to make phosphate fertilizers like DAP (diammonium phosphate) and MAP (monoammonium phosphate). Ammonia and natural gas prices impact phosphate fertilizer producers like Mosaic (MOS), Israel Chemicals (ICL), and Agrium (AGU).
Ammonium phosphates, especially DAP, are the most widely used phosphate fertilizers globally, according to Mosaic. Notably, the VanEck Vectors Agribusiness ETF (MOO) invests about 2.9% of its portfolio in Mosaic and 6.8% in Deere & Co (DE).
Last week, the average price for DAP in the Corn Belt fell 1% from the previous week at $326 per metric ton from $331 per metric ton. This week, prices fell to the lowest level since November 2011 in the Corn Belt region while YoY (year-over-year) prices are down 23%.
Average DAP prices in China remained flat at 2,684 Chinese yuan per metric ton from a week ago. Current DAP prices in China are well above the low point of 2,491 from two years ago. The average US Gulf NOLA (New Orleans) DAP price remained unchanged at $277 per metric ton.
The average realized price for Port Tampa Bay DAP declined from the previous week’s $349 per metric ton to $346 per metric ton. Similar to nitrogen fertilizer prices, US Gulf Coast NOLA, Tampa Bay, and Corn Belt DAP prices are down by an average of 26.8% year-over-year. In the next part of this series, we’ll turn our attention to the second most important phosphate fertilizer, MAP.