P&K Today | Volatility Strikes P&K

Posted on 02/08/2018 1:15 PM
| By dmichaelsen under

 

  • DAP $19.96 above year-ago pricing -- higher $6.82/st on the week to $466.07/st.
  • MAP $51.08 above year-ago -- lower $8.91/st this week to $498.16/st.
  • Potash $19.75 above year-ago -- lower $3.51/st this week to $339.79/st.

MAP led declines with Minnesota off $66.50, North Dakota down $38.10 and Indiana potashsoftening $28.90 per short ton on the week. Only Wisconsin was unchanged as Ohio added $26.67 and Nebraska gained $14.14.

Potash was lower as well with Minnesota off $44.40,l North Dakota off $38.10 and Michigan down $5.24. Two states were unchanged as Ohio gained $12.82 and Kansas firmed $8.58.

DAP posted gains this week led by Indiana, which added a corrective $65.90 as both Iowa and Ohio added roughly 20 bucks each. Five states were unchanged as Minnesota fell $30.90 and Michigan dropped $1.36.

This week's stock market volatility has certainly garnered some attention. This week's P&K price action was equally as volatile, and we note some wild price swings from state to state. It is unclear whether this is related to stock market activity or not. It is more likely dealers are updating prices to reflect their recent purchases, or even testing the limits of buyer price tolerance and profitability.phosphate

If corn growers are using yield-based calculations to figure P&K replacement for spring, applications are likely to be high, which would favor sellers when it comes to price shopping. But corn acreage is already leaning toward a switch to soybeans and other crops. If P&K replacement comes at too great a cost, demand could falter, and farmers could decide fewer corn acres make sense for the production budget.

We also have to keep in mind demand from South America. It may be a bit early, but the safrhina corn crop will follow closely on the heels of soybean harvest. That will have growers applying P&K and could account for the current price strength on the basis of world demand. I believe that to be at least partly responsible for this week's price volatility in P&K. that suggests opportunities lie on the back end of South American safrhina plantings which is when we will look to book remaining spring P&K needs.

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 February 2, 2017.

DAP is priced at 48 1/2 cents/lbP2O5; MAP at 46 3/4 cents/lbP2O5; Potash is at 28 3/4 cents/lbK2O.

P&K pricing by the pound -- 2/8/2018

DAP $P/lb

MAP $P/lb
Potash $K/lb
 
Average
$0.48 1/2
$0.46 3/4
$0.28 3/4
Average
Year-ago
$0.46 1/2
$0.46 1/2
$0.27
Year-ago

pandk indices


 

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