USA DAP Tumbles 4.5% in Mid-January 2026 as Demand Erosion Deepens

USA DAP Tumbles 4.5% in Mid-January 2026 as Demand Erosion Deepens

Franz Kafka 19-Jan-2026

At mid-January 2026, the US DAP market was being affected by sustained bearish sentiment due to weak buying interest and an increase in structural demand shift. Added to this was the ongoing downward trend caused by increasing use of precision Agriculture and Variable-Rate Application Technology, which is steadily reducing the amount used per acre. Furthermore, there are temporary shortages of NPKS Blends and the competitive pricing of these blends has led to many users substituting away from using DAP. Substitution has decreased demand in the market, although there is a small amount of support from Urban Turf Demand in certain regions of the Southeast and increased grain export programs. However, the combined effects of decreased efficiency and Blend Switching have left a firmly negative short-term outlook for DAP in the US market.

The United States fertilizer market has come under renewed pressure due to further weakening of Diammonium Phosphate (DAP)sentiment during the middle of January xxxx and thus has continued to exhibit strong bearish characteristics through all winter trade. The DAP market continues to be pressured by very weak buyer interest, a very high degree of caution with respect to restoration of inventories, and increasingly long cycles of inventory buildup as evidenced by poor negotiations. The entire phosphate complex continues to be extremely weak and will be unable to regain momentum due in large part to changes in agronomic practices and the changing position of preferred blends. In the Midwest, DAP distributors have experienced a pronounced decline in the number of inquiries to purchase DAP and enter formal contracts, and therefore, will continue to have a very weak outlook concerning DAP in the near term.

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