uploads///MAP Prices in Brazil

Are MAP Prices Consolidating at Their Current Levels?

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Jul. 12 2016, Updated 5:06 p.m. ET

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 up to $353 per metric ton from $352 per metric ton in the previous week. MAP prices remained above their lows from the first half of 2016, consolidating at their current levels.

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Year-over-year prices

In the week ended June 24, 2016, average MAP prices were lower than they’d been one year earlier. MAP prices averaged $353 per metric ton last week, 28% lower than their average price of $493 per metric ton in the corresponding week last year.

Unlike DAP prices, MAP prices appear to be stable at their current levels, which is very good for fertilizer producers who worry that further price falls 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 Company (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 after nitrogen and phosphate.

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