FERTILIZER SALES START TO PICK UP IN BRAZIL

Fertilizer sales for Brazil’s upcoming 2024-25 harvest show a gradual uptick following a year of sluggish activity. Factors like interest rate cuts, reduced input costs, and concerns over potential distribution bottlenecks are driving this resurgence. By May, farmers had secured 51% of required fertilizer, surpassing last year’s 44%. Despite lagging behind 2022’s 60%, the sector anticipates a similar level. Marcelo Mello, president of StoneX’s fertilizer division, notes a turnaround from historic lows in 2023. Lower interest rates and logistical worries prompt early purchases. Potash prices have dropped significantly, favoring growers, while MAP prices remain stable. Potassium chloride, which peaked at USD 1.2 thousand a ton in February 2022, now hovers near USD 300, enhancing the fertilizer-soybean exchange ratio.
Source: Globo Rural