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Why Were DAP Prices Flat to Negative Last Week?

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DAP fertilizers

DAP (diammonium phosphate) is one of the most common phosphorus fertilizers used globally along with MAP (monoammonium phosphate). For the week ending April 7, DAP prices were broadly flat to negative at the four locations discussed below.

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Price movement

Overall, DAP prices at the four locations in the above chart fell by an average of 33 basis points week-over-week. Prices at Tampa Bay fell by 80 basis points week-over-week to $370 per metric ton. Prices at Morocco, which has the largest reserves of phosphate rock, fell by 52 basis points week-over-week to $382 per metric ton.

In contrast, the weekly price movement at the other two locations in the above chart was flat week-over-week. At Central Florida, DAP prices were flat at $350 per short ton (or $318 per metric ton) week-over-week. Similarly, prices at the US Gulf NOLA (New Orleans) remained flat at $312 per short ton (or $283 per metric ton) week-0ver-week.

Overall, prices at the above four locations rose 1% year-over-year. Weakness in phosphate prices continued to extend in 2017—a negative for producers (MOO) such as Mosaic (MOS), Israel Chemical (ICL), PotashCorp (POT), and Agrium (AGU).

Phosphate rock prices

Last week, phosphate rock prices fell slightly week-over-week to $93 per metric ton from $94 per metric ton at Morocco. In the next part, we’ll discuss the MAP price movement in more detail.

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