Fertilizers sales are experiencing a very rapid growth. According to StoneX, Brazilian producers have already negotiated 48% of fertilizers for the first half of 2021. Purchases for the second half of 2021 are also well-advanced, reaching 24%. Analyst Marcelo Mello says that the rural producer is anticipating sales since December 2019, when the MAP price was extremely attractive. According to Mello, on account of the high price of grain, agriculturalists are interested in hastening the barter (reciprocal exchange of goods or services) and physical purchases, even though the latter is not so advantageous, now that the price of MAP has gone up by $100 since December 2019. Mello says that the producer needs 5% more soy to purchase the same amount of fertilizers purchased in the last five years. “It shows perhaps that the producer should wait for better moments in the coming months”.
Source: Canal Rural
*Translated by Ia Niani