Potash prices continued to show strength in the week ending October 13. The prices at each of the three locations discussed below rose week-over-week. The prices continue to support companies’ (XLB) volume growth like PotashCorp (POT), Mosaic (MOS), Agrium (AGU), and Intrepid Potash (IPI). Let’s dig deeper into the movements at the locations below.
Brazil continued to drive potash prices. The prices for the granular-grade of potash rose by 73 basis points week-over-week to $276 per metric ton from $274 per metric ton in Brazil. In the US Cornbelt region, the prices for granular-grade potash rose by 39 basis points week-over-week to $231 per metric ton from $230 per metric ton a week ago.
The prices for the standard-grade of potash in the South East Asia region also rose last week by as much as 40 basis points week-over-week to $254 per metric ton from $253 per metric ton.
YoY (year-over-year), the potash prices in Brazil were 16% higher last week from $237 per metric ton. However, the potash prices in the Cornbelt region and the South East Asia region had single-digit growth. Last week, the potash prices in the Cornbelt region rose 4% YoY. The potash prices rose 5% YoY in the South East Asia region last week.
In the next part, we’ll discuss fertilizer affordability.