In recent weeks, DAP (diammonium phosphate) prices, just like urea prices, trended lower week-over-week at the four locations discussed in this series. DAP and MAP (monoammonium phosphate) are the two most popular phosphate fertilizers. In this part, we’ll discuss DAP price movements.
Weekly price movements
Overall, DAP prices at the above four location fell week-over-week by 87 basis points on average. Prices at the Central Florida location fell as much as 1.5% week-over-week to $299 per metric ton from $304 per metric ton. Similarly, prices at the US Tampa Bay fell 1.4% to $360 per metric ton from $365 per metric ton.
Prices in NOLA (New Orleans) fell by 64 basis points week-over-week to $ 283 per metric ton from $285 per metric ton. At Morocco, prices remained unchanged at $377 per metric ton week-over-week.
Impact on companies
A lower price environment for phosphate fertilizers remains a concern for producers such as PotashCorp (POT), Mosaic (MOS), Agrium (AGU), and Israel Chemicals (ICL). However, strong demand for other fertilizers is a silver lining for these companies (SOIL). Recently, PotashCorp announced its 1Q17 earnings. The company’s increased shipment volumes for potash fertilizers helped offset weakness in phosphate prices.
To learn more, read Inside PotashCorp’s 1Q17 Surprise.
In the next part, we’ll discuss MAP price movements.