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MAP and DAP markets showed weak consolidation as of April 23, with the domestic 55% powdered MAP index slipping to 2,893.75 while other grades held steady. Downstream demand stayed tepid, plant operating rates fell, and some small producers stopped production.
Falling sulfur, phosphate rock and synthetic ammonia costs are weakening cost support.
Soft downstream demand combined with falling raw material costs points to continued downward pressure on phosphate fertilizer prices. Lower DAP and phosphate rock values reduce input costs for compound feed and feed-grain producers.
fdd-global.comFeidoodooApr 24, 2024Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Weak downstream demand, falling operating rates and declining sulfur, phosphate rock and ammonia input costs reduced cost support and pressured DAP/MAP prices, in line with the sharp weekly drop.
On April 23-24, weak demand, falling plant operating rates and lower sulfur, rock and ammonia costs reduced cost support for MAP and DAP, which is a direct bearish input-cost and demand driver inside the window.
Weak downstream demand, falling input costs (sulfur, rock, ammonia) and softening MAP index indicate eroding cost support and bearish sentiment, which could contribute to a DAP price decline.
Weak downstream demand, falling operating rates and declining sulfur, rock and ammonia costs reduced cost support for DAP/MAP, consistent with a price decline.
