MAP prices
Similar to what we saw for DAP (diammonium phosphate) prices, the MAP (monoammonium phosphate) prices also rose last week. MAP prices also remained significantly higher year-over-year, which may prove positive for the margins of companies (XLB) such as Mosaic (MOS), Nutrien (NTR), and Israel Chemicals (ICL).
Weekly movements
For the week ending January 5, 2018, MAP prices in Brazil rose by as much as 75 basis points to $404 per metric ton. Prices at this location rose from $401 per metric ton in our previous update for the week ending December 15.
Similarly, MAP prices in NOLA (New Orleans) also rose by ~78 basis points to $388 per metric ton from $385 per metric ton two weeks ago. At both of these locations, MAP prices were significantly higher. In the Brazil location, MAP prices rose ~21% year-over-year from $331 per metric ton. The strength in MAP prices in Brazil shows that the country remains a bright spot for producers including CF Industries (CF) and Terra Nitrogen (TNH).
In the US, MAP prices in NOLA rose ~23% year-over-year from $313 per metric ton. Just last year, the outlook for phosphate fertilizers was broadly subdued. However, the above positive momentum in phosphate fertilizers may lead to a revision in the outlook. We will get more insight when the above companies release their earnings in the coming weeks.
Next, we will discuss potash fertilizer prices.
