In this part, we’ll continue our discussion on weekly movements in phosphate prices. We’ll focus on MAP (monoammonium phosphate).
The above chart shows MAP price trends in Brazil and NOLA (New Orleans). In the week ending January 12, the MAP prices at these two locations moved in opposite directions week-over-week. MAP prices in Brazil moved higher by as much as 1.5% week-over-week to $410 per metric ton from $404 per metric ton. However, MAP prices in NOLA fell by 52 basis points week-over-week to $386 per metric ton from $388 per metric ton.
While the weekly price movements were mixed, MAP prices were comfortably higher compared to the levels observed in the same week in 2017. It’s positive for companies (MXI) like Nutrien (NTR), Mosiac (MOS), and Israel Chemicals (ICL). Last week, MAP prices in Brazil rose as much as 22% YoY (year-over-year) from $336 per metric ton. In the NOLA region, MAP prices rose as much as 21% YoY from $319 per metric ton.
The agricultural fertilizer industry appears to be coming out of its down cycle as the demand begins to pick up and absorb the excess capacity built up in the market. Next, we’ll see how potash moved in the week ending January 12.
The Fertilizer Affordability Index stood at 0.72x in the week ending January 12, 2018. The index moved sideways last week.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
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As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.