Monoammonium Phosphate Prices in Brazil Continue to Rise

MAP (monoammonium phosphate) is the second-most-used phosphate fertilizer after DAP (diammonium phosphate). Late last year, MAP prices in Brazil were below this year’s low at $329 per metric ton. Prices showed resistance at that level and have recovered quite well. Let’s see how MAP prices performed for the week ended February 17, 2017.

In the week ended February 24, average MAP prices in Brazil rose 1.8% to $391 per metric ton from $384 per metric ton the previous week. MAP prices rose 10% year-over-year from $356 in the corresponding week a year ago.

MAP prices have been recovering well from the low point of $329 as you can see in the above graph. This recovery has been positive for producers and spells a brighter outlook in the coming quarter. We’ll continue to monitor the trend this week.

Mosaic (MOS), PotashCorp (POT), Israel Chemicals (ICL), and Agrium (AGU) produce phosphate fertilizers. Falling fertilizer prices impact these companies. For indirect exposure to these companies, you can consider the VanEck Vectors Agribusiness ETF (MOO) (COMP-INDEX). 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.