- ) -- K+S AG, Europe’s biggest potash producer, is lifting prices for the crop nutrient for the sixth consecutive time as demand from farmers remains high.
K+S is raising European prices for muriate of potash, or MOP, the most common source of fertilizer potassium, by 2.8 percent to 363 euros ($520) per metric ton for larger quantities, said Michael Wudonig, a spokesman for the Kassel, Germany-based company. He confirmed information published in today’s FMB Weekly Potash Report.
“Demand for fertilizer continues to be high, partly because prices for agricultural products remain attractive,” Wudonig said. Capacity utilization in the potash industry continues to be “very high,” while K+S was producing “at the maximum,” Wudonig said.
K+S set prices at 285 euros in January last year and has steadily boosted charges since then. The latest increase of 10 euros a ton applies immediately to new business. The company is slowing the speed at which it marks up the fertilizer to avoid adverse effects on demand.
Corn prices in euros have risen about 12 percent so far this year, according to Bloomberg generic futures contracts on the Chicago Board of Trade. Soybeans have lost 8 percent, while wheat declined 14 percent, according to Bloomberg data.
Joachim Felker, the board member responsible for the company’s potash operations, on April 14 indicated that the latest company’s price boost on March 9 would be followed by further increases, saying wholesalers were “extremely positive on business.”
To contact the reporter on this story: Richard Weiss in Frankfurt at rweiss5@bloomberg.net