MAP (monoammonium phosphate) is the second-most-used phosphate fertilizer after DAP (diammonium phosphate). In December 2016, MAP prices in Brazil fell below this year’s low of $329 per metric ton. Prices showed resistance at that level. Let’s see how MAP prices performed for the week ending January 20, 2017.
Prices fell in Brazil
In the week ending January 20, average MAP prices in Brazil rose 2.1% to $343 per metric ton from $336 per metric ton the previous week. Like other fertilizer prices, average MAP prices in Brazil were trading ~6% lower than the same week in 2016.
MAP prices started a downward slide in recent weeks, as you can see in the above graph. It has been negative for producers. However, prices appear to be recovering. We’ll continue to monitor the trend for MAP prices in the coming week.
MAP prices have been falling over the past year. Last week, MAP continued to trade higher than the recent low of $329 per metric ton, which is positive for MAP producers.
For indirect exposure to those companies, you could consider the VanEck Vectors Agribusiness ETF (MOO). MOO invests about one-third of its portfolio in agricultural chemicals.
In the next part, we’ll look at the prices for potash fertilizers—the third key crop nutrient after nitrogen and phosphate.