P&K Today | P&K Technicals Examined

Posted on 03/01/2018 4:27 PM

 

  • DAP $22.47 above year-ago pricing -- lower 43 cents/st on the week to $472.12/st.
  • MAP $53.18 above year-ago -- higher $1.83/st this week to $506.71/st.
  • Potash $15.76 above year-ago -- higher 14 cents/st this week to $342.96/st.

MAP once again led gins in the P&K segment this week with Indiana up $12.55 and Ohio gaining $7.10 phosphate chartper short ton. Seven states were unchanged as Nebraska fell $5.48 and Iowa off 6 cents.

Potash was higher as well led by Ohio which gained $5.49 and Indiana firmed $4.61. Four states were unchanged as Kansas fell $5.60 and South Dakota softened $3.04.

DAP bucked the upward trend this week led by a $5.48 decline in Minnesota and a $1.72 cutback in Kansas. Eight states were unchanged as Michigan was our only DAP gainer, up $3.01 on the week.

Overall, P&K firmed this week, but the declines that did take place were in the southwestern corner of our survey -- Kansas and Nebraska. At the same time, the bulk of this week's gains were reported in Indiana and Ohio. It is likely transport difficulties resulting from flooding this week are supporting the higher prices. That could come either on a lack of supplies making their way upriver, or on increasing transport costs.

It will not be long before price support for P&K will increase on the basis of demand for spring applications. We advised you book your full compliment of P&K for spring last week and if you have not yet done so, I would reiterate that advice as there is no price relief in sight.potash price chart

On the technical side, it is very conspicuous that MAP is at a very wide premium to DAP. In fact, the spread this week widened to nearly $35 on a typical spread of $15 to $20. DAP and MAP will work to correct the spread. In the current climate, it is easy to make the case that MAP will pull DAP higher rather than the other way around.

Phosphate prices will remain elevated until world production increases, which may not manifest itself for a full calendar year from now. As we mentioned in our nitrogen report, corn futures are easing some of the tension resulting from rising fertilizer prices with December futures up beyond the $4.00 level this week.

For a little perspective, this week's charts feature the four-year average prices of P&K and both phosphates and potash are priced below their respective running averages.

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 23, 2017.

DAP is priced at 49 1/4 cents/lbP2O5; MAP at 47 1/2 cents/lbP2O5; Potash is at 28 3/4 cents/lbK2O.

P&K pricing by the pound -- 3/1/2018

DAP $P/lb

MAP $P/lb
Potash $K/lb
 
Average
$0.49 1/4
$0.47 1/2
$0.28 3/4
Average
Year-ago
$0.47
$0.42 1/4
$0.27 3/4
Year-ago

pandk indices


 

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