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Are Monoammonium Phosphate Prices Stabilizing at Current Levels?

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Monoammonium phosphate prices

MAP (monoammonium phosphate) is the second-most used phosphate fertilizer after DAP (diammonium phosphate). In the week ended May 27, 2016, the average price for MAP in Brazil inched down slightly to $352 per metric ton, compared with $353 per metric ton the previous week. MAP prices remained above the low of $329 per metric ton from the week ended February 12, 2016.

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Year-over-year prices

The average prices for MAP were lower than they were one year ago. MAP’s average price of $352 per metric ton in the week ended May 20 was 29% lower than the average price of $497 per metric ton in the corresponding week one year before. In contrast with DAP prices, MAP prices continue to stabilize at current levels.

Companies and ETFs

Despite MAP’s price falling over the past year, it seems to be recovering and staying above the low of $329 per metric ton it 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 besides nitrogen and phosphate.

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