Fertiliser Price Update – DAP Price

Summary & key takeouts
It’s that time of the year. Time to start spending money on inputs for the coming crop, and one of those will be DAP.
We will be adding to our DAP/MAP coverage in the coming weeks; the chart below shows the price of DAP in both Australia and China in A$ terms. This price is FOB, which is free on board (loaded onto the vessel).
Both prices tend to follow each other with a strong correlation due to them being globally traded commodities. Australia produces DAP, which is used in the domestic and export markets. In the past, we have tended to purchase DAP/MAP from China (when available) and further afield origins such as Morocco.
In the last couple of months, we have seen DAP prices rising in A$ terms due to a combination of a higher commodity price and a lower A$.
The DAP price in China at present is A$987. Compared to A$917 in October. DAP pricing is still substantially above the levels pre-COVID.
One of the reasons for the increase is tight supply, in part caused by China, which, in recent years, has introduced restrictions in various forms. This is to ensure that supplies remain available for the domestic market.
