Supply of phosphate fertilizer has continued increasing in the United States despite attempts by companies such as Mosaic, and PotashCorp curtailing production in the first quarter of 2012. As a result, phosphate fertilizer prices are falling.
PotashCorp statistics revealed a continuing build up of U.S. phosphate inventories of 84,000 tonnes, which stocks of diammonium phosphate (DAP), ending 35 percent above average levels, Agrimoney.com reported.
As a result, prices were decreasing and falling below \$500 a tonne in Central Florida, down from nearly \$600 a tonne last summer, according to reports gathered by Agrimoney.com.
Mosaic wasn’t the only country whose phosphate inventories have risen. Russia’s PhosAgro, the largest phosphate producer in Europe and the former Soviet Union, announced its production would decrease by more than 22 percent on year in the first three months of 2012. This move was aimed at slowing the decrease in prices.
Others have forecasted a decline in prices. NPK Fertilizer Advisory Services said there was a “good possibility” of prices continuing to decrease into 2013. This decrease was forecasted because of new projects coming on line.