U.S. Commerce Department lowers Moroccan phosphate duties

Farmers might get some price relief because of lower duties on phosphate fertilizer from Morocco.

Josh Linville with Stone X tells Brownfield he’s surprised The U.S. Department of Commerce announced Friday it would lower the duties from 19.97% down to 2.12% but, “This might not be the silver bullet everybody hopes it will be for phosphate prices. I don’t believe we can sit there and expect that we’re going to see DAP and MAP (Di-ammonium Phosphate and Monoammonium Phosphate) fall by two or three hundred dollars a ton.”

Linville says the lower duties will help inventories, but more production needs to come from the rest of the world before the U.S. will see big price changes. “Supply needs to get ahead of demand. We’re seeing signs of that happening.”

Linville says don’t expect that price relief right away because even if Morocco sent a ship today, it would not arrive to the U.S. shores until early December, and to local dealers long after that.

The lower duties are being praised by more than 60 agriculture groups, including the National Corn Growers Association, who sent a letter to the Commerce Department requesting the change.

AUDIO: Josh Linville discusses his concerns about phosphate fertilizers in light of the lower import duties with Brownfield’s Larry Lee

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