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Fertilizer purchasing power in Brazil worsens in July, says Mosaic

Posted by Rafael Moro

Image: Pixabay

The purchasing power of fertilizers by farmers in Brazil had a worse result in July than in the same period of the previous year, amid strong demand, supply restrictions in the international market and decline in soybean and corn prices, he said. to Mosaic Fertilizers this Tuesday (17).

According to the company, the Fertilizer Purchasing Power Index (IPCF) reached 1.20 last month, compared to 0.90 in July 2020.

Both have 2017 as the base level, which means that fertilizers are more accessible than in the same period of that year, when the indicator remains below 1.00.

The IPCF calculation takes into account the relationship between fertilizer prices and the prices of some of the main Brazilian agricultural products -- soybeans, corn, sugar, ethanol and cotton.

"In July, there was greater exchange rate stability and price appreciation of the two main commodities in the index - soybeans and corn," Mosaic said in a statement.

"However, the fertilizer market remains firm due to strong international demand and supply-side constraints accentuated by production losses in North America."

Even so, the company believes that the global economic recovery and steady demand for food, in addition to tighter grain stocks in the world, should continue to boost the use of agricultural inputs, including fertilizers, given an increase in planting areas and in the use of technologies.

The company also indicated that, even with the coming and going of the market, the profitability of crops in Brazil still encourages investments by producers.

"Despite the fluctuations, it is worth noting that the profitability of the main crops remains positive, stimulating investment in technology. Brazil should reap in 2021/22 another record grain harvest and should also ship a record volume of fertilizers," stated the Mosaic's commercial vice president, Eduardo Monteiro.

By: Gabriel Araujo | Notícias Agrícolas

This text was automatically translated from Portuguese.