Last week was mostly positive for DAP (diammonium phosphate). Phosphorus fertilizers (SOIL) are becoming more important as awareness of balanced NPK (nitrogen, phosphorus, and potassium) application fertilizers grows. The most common phosphorus fertilizers include ammonium phosphates such as DAP and MAP (monoammonium phosphate).
For the week ending January 20, 2017, DAP price movements were mostly positive. They rose 1.9% compared to the previous week. Prices in the US Gulf NOLA (New Orleans) rose by 64 basis points to $313 per short ton ($284 per metric ton) week-over-week. DAP prices in Tampa Bay rose 2.9% to $329 per metric ton from $321 per metric ton the week before. Similarly, DAP prices in Central Florida rose 1.9% to $323 per short ton ($293 per metric ton) week-over-week.
YoY (year-over-year), average DAP prices at the above three locations fell an average of 13%. In North America, Mosaic (MOS) is one of the largest phosphate producers. PotashCorp (POT), Agrium (AGU), and Israel Chemicals (ICL) also produce and distribute phosphate fertilizers.
Morocco has the largest phosphate rock reserves. The average prices rose by 89 basis points week-over-week to $340 per metric ton. Prices fell ~23% YoY.
Ammonia is a feedstock for producing DAP and MAP. Ammonia, natural gas, and phosphate rock prices impact phosphate fertilizer producers. Last week, phosphate rock prices in Morocco remained unchanged at $94 per metric ton week-over-week. They were trading ~21.0% lower YoY.
In the next part, we’ll look at MAP prices in more detail.