Fertilizer Inventory Analysis 12.15.10

Both PotashCorp and Agrium provided monthly market report updates last evening outlining inventory and pricing data for fertilizer nutrients in North America. While potash and urea inventories increased from October levels, ending inventories for both crop nutrients remained well below historical levels. On the phosphates front, DAP and MAP inventories continued to decline falling significantly below historical levels. Highlights from the report include:

 

Potash:

§  North American ending inventory in November increased by 182,000t from October (an increase of around 13%) however, potash inventory was still down approximately 22% when compared to the five year average.

Urea:

§  North American urea inventories climbed 47,000t from the previous month, but were still approximately 13% below the 5 year average inventory level.

DAP/MAP:

§  DAP/MAP inventories tightened in November dropping 17% from already record lows in October. Inventories were 39% below levels in November 2009, and trail the 5 year average by approximately 50%.

§  DAP inventories made up the bulk of the drop and now sit 57% below the 5 year average, while MAP inventories are 39% below the 5 year average.