Phosphates pricing pushed up $50 per ton at the start of this quarter. It is likely that price pressure will remain strong for the rest of the year.
However, with the economy heating up, demand for the acid that goes into the production of phosphates could push this market even higher.
Actionable insight: For Phosphates, follow the sulfuric acid market and if this market moves higher look to go long on Phosphates inventory.
The feed grade Urea market has increased steadily since the beginning of the year. Up to this point, domestic supply has been tight. Imports were also tight due to port and logistics issues.
Although domestic supply has been increasing, the U.S. still has favorable pricing that is likely to attract imports.
Actionable insight: For Urea, follow the spot market. The second half of this quarter could lead to lower prices. Demand on the fertilizer side may subside and supply is setting up to be substantial.