Purchasing power of fertilizers in Brazil worsens in July, points out Mosaic


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The purchasing power of fertilizers by Brazilian farmers 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 a 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 a 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 – soy, corn, sugar, ethanol and cotton.

“In July, there was greater stability in the exchange rate and appreciation in the prices of the two main commodities in the index – soybeans and corn,” said Mosaic in a note.

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“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 the firm 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 the use of technologies.

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

“Despite the fluctuations, it is worth highlighting that the profitability of the main crops remains positive, encouraging investment in technology. Brazil is expected to harvest another record grain harvest in 2021/22 and is also expected to ship a record volume of fertilizers,” said Mosaic’s Commercial Vice President, Eduardo Monteiro.

By: Gabriel Araujo | Notícias Agrícolas

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