MAP price movements
Similar to what we saw for DAP (diammonium phosphate) price movements, in the previous part of this series, MAP (monoammonium phosphate) prices were also mixed overall last week.
To learn more about the different types of phosphate fertilizers and which ones are used the most, read our series Agricultural Fertilizer Industry: Your Comprehensive Overview.
Last week, which ended December 8, 2017, MAP prices in Brazil fell week-over-week by 25 basis points to $402 per metric ton, from $403 per metric ton. Although prices fell last week, they continue to stay above the previous peak of $400 per metric ton achieved in March 2017.
In contrast to the momentum in Brazil, MAP prices in NOLA (New Orleans) in the United States (XLB) rose 1.9% week-over-week to $378 per metric ton, from $371 per metric ton.
At both of these locations, MAP prices remain significantly higher year-over-year. To put it in perspective, MAP prices in NOLA rose 27% year-over-year from $298 per metric ton the previous week, while in Brazil, MAP prices remained higher by 22% year-over-year, from $330 per metric ton last week.
A positive momentum in MAP and DAP prices is favorable for the margins of producers Mosiac (MOS), Israel Chemicals (ICL), PotashCorp (POT), and Agrium (AGU). However, these companies continue to have muted expectations for the direction in phosphate prices for the rest of 2017 and early 2018. We’ll have more updates on changes in outlook, if any, when these companies release their earnings next month.
Next, let’s look at potash prices.