Last week, potash prices continued to be stable as they have been for much of this year. Last week’s price movement was flat to positive and added more conviction for a positive outlook for potash players (MOO) like PotashCorp (POT), Intrepid Potash (IPI), Mosaic (MOS), and Agrium (AGU).
For the week ended July 28, MOP (muriate of potash) prices in the Corn Belt region of the US saw positive momentum with increases by as much as 1.6% week-over-week to $227 per metric ton from $223 per metric ton. Prices at this location now stand about 15% higher year-over-year.
Potash prices in Brazil continued to move sideways last week, making it the tenth consecutive week without any change in prices. Last week, they stood at $265 per metric ton. However, year-over-year, potash prices in Brazil were about 18% higher.
Last week, prices moved sideways in the Southeast Asia region as well to $248 per metric ton. Last week was the 11th consecutive week of sideways movement at this location. Year-over-year, potash prices at this location were 3% higher.
Recently, PotashCorp released its earnings and saw a strong expansion in margins for its potash fertilizer segment. This strength was driven primarily by higher potash prices and shipment growth.
Next, we’ll discuss fertilizer affordability.