In the previous part of this series, we saw how DAP (diammonium phosphate) fertilizer prices have struggled throughout the past year. The same can be said for MAP (monoammonium phosphate) fertilizer prices. MAP prices reached a peak of $400 per metric ton earlier this year, but they’ve been on a downward trajectory ever since.
After falling for 13 consecutive weeks, MAP prices in Brazil reversed last week, rising 29 basis point week-over-week to $344 per metric ton. from $343 per metric ton in the previous week. MAP prices have fallen lower than the levels a year ago when prices were $356 in the corresponding week.
Falling MAP prices continue to highlight the distressing situation in the phosphate environment. They echo the sentiment for DAP fertilizers as well.
In its recent 2Q17 earnings call, Mosaic (MOS) management stated that it believes the phosphate market has stabilized this year. Better expectations appear to come from weakening Chinese exports. However, management went on say, “While we continue to expect that Chinese phosphate exports will be down this year compared with 2016, they remain a wildcard.”
Next, let’s look at potash fertilizer price movements.