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Phosphate Fertilizer Continues to Hit New Highs

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DAP prices

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.

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Weekly movements

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).

Yearly movements

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.

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