Analysts say that the price of oil is likely to reach lower levels causing impacts on purchase of nitrogen fertilizers (basis of products such as ammonia, urea and nitric acid). For the analyst Vlamir Brandalizze from Brandalizze Consulting, the declining prices also enhance the exchange ratio for the producer. “Unlike gasoline prices at pumps, the drop in crude oil is more rapidly impacted. With a barrel below US$ 50, the exchange ratio for the producer is favorable”, he says. He also says that the fertilizer exchange ratio is favorable for corn and soybean. “It is necessary to monitor the market and take advantage of opportunities. As the U.S crop is about to begin, the advantageous conditions will come to an end”.
Source: Canal Rural
*Translated by Ia Niani