Phosphate Fertilizer Continues to Hit New Highs

DAP (diammonium phosphate) fertilizer prices continued to hit new highs last week, which ended on August 24. Ammonium phosphate fertilizers use ammonia, which is a nitrogen fertilizer. The tighter supply of ammonia creates a pressure on ammonium-based phosphate and leads to an overall increase in prices.

Last week, DAP prices in central Florida rose 3.3% week-over-week to $372 per metric ton, from $360 per metric ton. Prices in the NOLA (New Orleans) region rose 73 basis points week-over-week to $374 per metric ton, from $360 per metric ton. In the Tampa region, DAP prices rose 69 basis points to $438 per metric ton, from $435 per metric ton the previous week.

Outside the United States, Morocco was the only location to see a weekly gain in DAP prices, which rose 45 basis points to $447 per metric ton, from $445 per metric ton.

In Saudi Arabia, DAP prices remained unchanged at $425 per metric ton. In China, prices remained unchanged at $417 per metric ton, and in India, prices remained unchanged at $430 per metric ton.

Strong prices are positive for companies (XLB) such as Mosaic (MOS), Nutrien (NTR), and Israel Chemicals (ICL).

Year-over-year, DAP prices have remained strong at each of the above locations. In Tampa, prices were up 30%. In NOLA, prices were up 28%, and in central Florida, they rose 24% year-over-year.

In Morocco, DAP prices were up 28%. Prices rose 21% in Saudi Arabia and China. In India, DAP prices rose 20% year-over-year.