Commodity Brokerage / Fertilizers / DAP

Fertilizers

DAP

Diammonium phosphate (DAP) is a concentrated phosphate fertilizer used widely in grain and broad-acre agriculture.

MARKET REFERENCES

How the market commonly references price

There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.

  • CFR India DAP
  • FOB Morocco / North Africa
  • FOB China / Middle East regional references

TYPICAL COMMERCIAL STRUCTURE

How physical pricing is often built

Spot cargoes are typically negotiated as a regional FOB or CFR assessment ± producer/origin differential. For destination markets, FOB value + freight + handling provides the commercial delivered equivalent.

PRICE DRIVERS

What moves the physical differential?

  • Phosphate rock and ammonia costs
  • India import demand
  • China export policy
  • Sulphur cost
  • Freight

PHYSICAL TRADE

Commercial considerations

Nutrient specification, granulation, cadmium limits and bagging/bulk basis can affect price.

The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.

Market methodology reference: view source / methodology

PHYSICAL COMMODITY BROKERAGE

Discuss a DAP requirement.

Share the specification, quantity, origin or destination, delivery basis and timing.

Contact AZA Green