How Subdued Potash Prices Have Extended to Potash Players

The weekly average price for MOP (muriate of potash) in Vancouver, Canada, remained flat in the week ended June 24, 2016. Prices are below their 15-year average of $290 per metric ton.

This price fall has affected MOP producers such as PotashCorp (POT), Intrepid Potash (IPI), and Mosaic Company (MOS). Intrepid Potash, which produces only potash fertilizers, unlike PotashCorp, has fallen by 45% YTD (year-to-date).

For the week ended June 24, 2016, MOP prices at Vancouver stood at $264 per metric ton, unchanged from the previous week. On the other hand, the price for standard MOP in Southeast Asia fell to $2,239 per metric ton from $2,244 per metric ton in the previous week.

Similarly, the price of granular MOP in Brazil inched down to $2,217 per metric ton for the week ended June 24 compared to $221 per metric ton in the previous week.

MOP prices in the Corn Belt remained subdued at $204 per metric ton ($225 per short ton) compared to $206 per metric ton ($226 per short ton) in the previous week.

MOP prices in Vancouver are still down by 14% year-over-year compared to their average of $307 per metric ton last year. MOP in Brazil fell by 35% year-over-year (or YoY) from $335 per metric ton. In Southeast Asia, standard MOP prices fell 27% from $328 per metric ton YoY. In the Corn Belt, MOP prices fell 37% from $324 per metric ton YoY.

These downward price movements show that the market for potash producers such as PotashCorp, Mosaic Company, Intrepid Potash, and Agrium (AGU) remains challenging. You can gain exposure to these companies through the SPDR S&P North American Natural Resources ETF (NANR). To learn more about agricultural fertilizer companies, visit our Agricultural Fertilizers page.