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How Did MAP Price Movement Affect Fertilizer Producers?

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Monoammonium phosphate prices

MAP (monoammonium phosphate) is the second most used phosphate fertilizer after DAP (diammonium phosphate). Last week, average MAP prices in Brazil inched down to $352 per metric ton from $354 per metric ton the previous week. MAP prices continue to stay above their lows from the first half of 2016.

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Year-over-year prices

Average MAP prices were lower than they were a year ago. MAP prices averaged $352 per metric ton last week, which was 29% lower than the average price of $499 per metric ton in the corresponding week last year. Similar to DAP prices, MAP prices continue to stabilize at their current levels, which is very good for fertilizer producers, who have been dreading that further price declines could hurt their margins.

Companies and ETFs

Despite MAP prices falling over the past year, they seem to be recovering and staying above the low of $329 per metric ton we saw in the second half of February 2016.

Mosaic (MOS), PotashCorp (POT), Israel Chemicals (ICL), and Agrium (AGU) produce phosphate fertilizers and are affected by falling fertilizer prices. You could consider investing in the SPDR S&P North American Natural Resources ETF (NANR), which invests about 1.6% of its portfolio in MOS. In the next part of this series, we’ll look at prices for potash fertilizers, the third key crop nutrient behind nitrogen and phosphate.

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