21 May 2012 22:41 [Source: ICIS news]
HOUSTON (ICIS)--The strong demand for diammonium phosphate (DAP) fertilizer to nourish crops planted in the US this spring is expected to result in higher prices in June as the fertilizer pipeline starts to refill ahead of the autumn application season, a review of marketing activity by ICIS indicated on Monday.
A soft US DAP market at the end of May as the spring application season ended is expected to correct in June and July.
DAP barges selling in a range of $485-495/ton (€417-426/tonne) FOB (free on board) New Orleans for the end of May are seen moving up to $500/ton and above in June because of the positive sentiment among dealers who are looking ahead to heavy autumn demand.
The demand for DAP, and fertilizers in general, is supported by strong agricultural fundamentals such as higher crop prices that in turn prompt larger crop acreages, all driven by an expanding and hungry global population.
US DAP export prices that were assessed by ICIS in a range of $535-545/tonne FOB Tampa on 10 May were assessed at $540-570/tonne on 17 May based on increasing demand from Latin America.
Prices for DAP that are anticipated to increase in June are projected by market players to rise further in July and August as US fertilizer dealers place orders for autumn application needs.
($1 = €0.78)
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