DAP stockpiles will get tight - Mosaic

09 July 2008 01:08  [Source: ICIS news]

HOUSTON (ICIS news)--Stockpiles of diammonium phosphate (DAP) will be smaller in the next six months than their lowest point of last year, Mosaic predicted in a memo on Tuesday.

Filed after the close of trading on the New York Stock Exchange, the memo also claims ammonia prices bottomed out at $515/tonne (€330/tonne) Tampa CFR (cost and freight) and “appear headed back to more than $600 per tonne due to the surge in urea prices”.

Prilled urea was trading at $725-$740/short tonne FOB (free on board), up from $665-$670 four weeks ago.

Granular urea was trading at $725-$745/short tonne FOB, up from $660-$668/short tonne four weeks ago, according to data from global chemical market intelligence service ICIS pricing. 

Ammonia is currently trading at $585/tonne CFR Tampa, up from $510/tonne four weeks ago.

Ammonia is also currently trading at $500-$520/short ton FOB New Orleans, up from $475-$485/short ton four weeks ago, according to ICIS pricing.

The fertilizer company also said that high food prices would create further incentive for farmers to produce more, which would in turn “keep phosphate demand growing at the higher rates of the past four years”.

Mosaic, based in Minnesota, is one of North America’s largest publicly traded fertilizer companies. It has seen its market capitalisation more than quadruple over the past 52 weeks as the global food crisis has placed a premium on crops.

($1 = €0.64)

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By: David Rosen
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