P&KToday: P&K Prices Fall as Applications Come to an End

May 20, 2016 11:16 AM

 

PhosphateP&K softened on the week.

  • DAP $81.65 below year-ago pricing -- down $3.83/st on the week to $485.68/st.
  • MAP $96.87 below year-ago -- lower $2.35/st this week to $500.34/st.
  • Potash $132.56 below year-ago -- lower $4.05/st this week to $353.65/st.
  • The average cash corn price figured in to P&K this week is $3.44 3/4 per bushel.

The national average corn basis softened 3 1/2 cents from last week to 7 cents below July futures. The national average cash corn price firmed 13 1/2 cents from last week to $3.87 3/4. Basis is softer than the three-year average, which is 20 cents above futures for this week.

PotashProduction cutbacks among North American potash producers continue, but foreign producers are likely to produce full steam ahead, even as potash prices drift lower. Downside potential will be limited by already low prices, which have been a weight on the P&K sector. Phosphate prices may fall slightly through summer, but tight global stocks and curtailed North American DAP/MAP production will keep a hard floor under the market.

This week's price declines suggest applications are all but wrapped up for spring 2016 and supply excesses will add pressure to summer and fall prices in areas where demand for P&K fell below the expectations of retailers.

Import prices are still at a discount to domestically produced phosphate and, as has been the case for several months, prices will rely on international bids for price guidance. We expect lower phosphate prices for fall applications, but we are exploring the possibility of a mild potash rally ahead of post harvest applications. If the market signals impending strength, we will book aggressively ahead of harvest and may advise growers book well in advance of spring 2017 applications.
 

By the Pound --

The following is an updated table of P&K pricing by the pound as reported to your Inputs Monitor for the week ended May 13, 2016.

DAP is priced at 50 1/2 cents/lbP2O5; MAP at 47 cents/lbP2O5; Potash is at 29 1/4 cents/lbK2O.

P&K pricing by the pound -- 5/20/2016

DAP $P/lb

MAP $P/lb
Potash $K/lb
 
Average
$0.50 1/2
$0.47
$0.29 1/4
Average
Year-ago
$0.59 3/4
$0.56 3/4
$0.40 1/2
Year-ago

 

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