Uralkali Shakes the Global Potash Tree Again

August 28, 2015 10:11 AM

DAP and potash fell slightly as MAP firmed.

  • 8282015Potash.pngDAP $16.66 below year-ago pricing -- lower $4.23/st on the week to $561.71/st.
  • MAP $2.62 below year-ago -- higher $1.23/st this week to $591.35/st.
  • Potash $2.26 below year-ago -- lower $2.82/st this week to $472.35/st.
  • The average cash corn price figured in to P&K this week is $4.13.
  • The national average corn basis firmed 1 3/4 cent from last week to 2 cents below September futures. The national average cash corn price softened 3 3/4 cents from last week to $3.59 3/4. Basis is much softer than the three-year average, which is 40 1/2 cents above futures for this week.
     

Uralkali announced this week they may withdraw from the London Stock Exchange and merge with Uralchem. (Click here to read more from Reuters.) Uralkali was the company in 2013 that created a ruckus in global potash markets by separating from former partner Belarus Potash Co and threatened to oversupply the global potash market in 8282015Phjosphate.pngan effort to run competitors out of business and gather marketshare. That plan was thwarted by a sinkhole at the Solikamsk complex, but Uralkali remains the world's largest potash producer and as the Russian economy declines on lower oil revenues and Western sanctions, a separation from the west hints at another devious plot to regain marketshare and turn resources into much needed cash.

Meanwhile, U.S. corn prices are such by the end of this week that farmers will once again consider minimizing P&K applications, at least for fall. This week our P&K is priced for an average cash corn bid of $4.13 bushel, only slightly below last year's price. The sideways motion that has generally characterized the retail fertilizer markets appears poised to continue. We have filled 50% of P&K for fall. We will cover spring needs later on as we expect prices to soften through the winter.

By the Pound --

DAP is priced at 59 cents/lbP2O5, 1/2 cent lower on the week; MAP at 56 cents/lbP2O5, unchanged on the week; Potash is at 39 1/4 cents/lbK2O, down 1/4 cent 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 August 21, 2015.

P&K pricing by the pound -- 8/28/2015

DAP $P/lb

MAP $P/lb
Potash $K/lb
 
Average
$0.59
$0.56
$0.39 1/4
Average
Year-ago
$0.60 3/4
$0.56 1/4
$0.39 1/2
Year-ago

 

Phosphate -- Phosphates were mixed on the week with DAP $4.23 lower regionally and MAP $1.23 higher per short ton. Nebraska led DAP to the downside correcting 37 bucks lower while Michigan firmed $18. Nebraska MAP offset a 6 dollar increase in Michigan by falling 6 bucks. Others were within a few bucks of unchanged. Altogether, DAP is priced at a regional average of $561.71 and MAP is currently priced at $591.35 per short ton.

Potash -- Potash was $2.82 lower on the week to an average of $472.35. Michigan fell 11 bucks and Kansas fell $6 -- most others were right around unchanged on the week.

 

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