P&K Today | Michigan Lies Atop Rich Potash Deposit

Posted on 04/13/2018 11:59 AM

 

  • DAP $36.72 above year-ago pricing -- higher $1.58/st on the week to $484.00/st.
  • MAP $48.91 above year-ago -- higher $1.73/st this week to $516.80/st.
  • Potash $13.16 above year-ago -- higher 84 cents/st this week to $346.32/st.

MAP was our upside leader in the P&K segment this week led by Kansas, which firmed $12.76 as Nebraska firmed $5.74. Three states were unchanged as Illinois fell $4.96 to lead declines and Minnesota fell $1.90.potash

DAP was higher as well with Nebraska up $11.48 as Michigan gained $7.62. Two states were unchanged as Wisconsin softened $3.72 and both Minnesota and Missouri fell $2.86.

Potash was slightly higher as well, led by Michigan which gained $3.66 as Ohio firmed $2.41. Only North Dakota potash was unchanged as Missouri fell $2.19 and Illinois softened 85 cents by the short ton.

The Detroit Free Press published a story in mid-March detailing the rediscovery of untapped potash deposits deep beneath the Michigan soil. Experts estimate the deposit spans more than nine Michigan counties and at the proposed extraction rate of 650,000 tons per year, the known reserves could support mining activity for 150 years.

Samples from the deposit are of extremely high quality and since the United States imports 94% of the potash it phosphateconsumes, the domestic production will help moderate pricing and ensure adequate supplies, especially in the upper-Midwest.

But the proposed operation is far from actual production. Environmental advocates point to the water-intensive extraction process, fearing that the added draw on the water table could interfere with local streams, rivers and lakes, and otherwise damage the Osceola County wetland complex. Michigan Potash CEO Theodore Pagano has responded by saying the operation will strive to use less water than allotted. The State of Michigan has already allotted nearly 7.6 million liters of water per day, which adds up to over 274 million liters of groundwater annually.

there are currently only 10 potash producers in the world with only two production facilities in North America, both with principal assets concentrated in Canada. The addition of new potash production in the northern U.S. would bring as many as 300 permanent jobs and provide U.S. growers with ample supplies of high quality potash for several decades to come.

Read the full article from the Detroit Free Press here.

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 April 7, 2018.

DAP is priced at 50 1/2 cents/lbP2O5; MAP at 48 1/2 cents/lbP2O5; Potash is at 28 1/2 cents/lbK2O.

P&K pricing by the pound -- 4/12/2018

DAP $P/lb

MAP $P/lb
Potash $K/lb
 
Average
$0.50 1/2
$0.48 1/2
$0.28 1/2
Average
Year-ago
$0.46 3/4
$0.43 3/4
$0.28 1/4
Year-ago

pandk indices chart


 

Add new comment