For the week ending April 7, 2017, MAP (monoammonium phosphate) prices in Brazil continued to fall week-over-week. MAP prices reached a peak of $400 per metric ton last month after positive movements in Brazil’s market. Let’s look at where prices stand.
Last week, MAP prices fell by 52 basis points to $382 per metric ton from $384 per metric ton week-over-week. It was a continuation of the downward trend over the past four weeks. Now, prices are 4.5% lower than the peak of $400 last month.
While prices on April 7 were lower compared to last month, they remained higher by as much as 16% from the low point of $329 per metric ton in the second half of last year—as you can see in the above chart. Like phosphate, the market continued to remain weak for MAP last week.
In contrast to these weekly movements, MAP prices in Brazil were almost 6% higher compared to the same week in 2016. While this is positive, it doesn’t create excitement for investors in the phosphate industry.
Brazil is one of the key agricultural markets for companies that produce phosphate including Mosaic (MOS), Israel Chemicals (ICL), PotashCorp (POT), and Agrium (AGU). The VanEck Vectors Agribusiness ETF (MOO) has about one-third of its portfolio in the agricultural chemicals sector.
In the next part, we’ll discuss potash fertilizers.