Fertilizer Inventories Mixed In July

Posted on August 15, 2012


U.S.  DAP/MAP (phosphate) inventories rose by 13 percent year over year in July along side a 16 percent increase in production.  While I do not have exact figures for new orders, these numbers show a decline in new orders of roughly 3 percent. Accordingly the US producer price index for phosphate  fell 0.9 percent during the month.  Phosphate inventories are below year ago levels as well as the 5 year average.

Fertilizer Price Changes April-July 2012

Source: The Mays Report


Potash inventories finally fell in July as dealers begin to refill their bins. Producers have been mum on pricing since they are in contract negotiations with China and India. However, the price index shows a 1.9 percent decline in July, which makes sense given the fall in inventories. Potash inventories are well above their 5 year average for this time of year. We’ll have to wait and see if dealers fully restock or if they are looking for more favorable pricing in the coming months.

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