International agricultural commodity prices and the current exchange rate boosted positive profitability for Brazilian crops in October. The planted area in Brazil is expected to break a record in the 21/22 season. Greater investment in farming influenced the Fertilizer Purchasing Power Index (IPCF) last month. The indicator was 1.50, slightly higher than that registered in September (1.26). The IPCF is monthly released by Mosaic Fertilizantes, which analyzes the correlation between commodity prices, fertilizer prices, and the exchange rate. The increase in October is mostly due to the scenario of fertilizers, which continues showing tight balance of global supply and demand, in addition to recent increases in production costs caused by macroeconomic issues, such as natural gas and oil. The price of agricultural commodities summer grain crops, another aspect that impacts the IPCF, showed a slight drop due to the beginning of the summer season grain crops. Corn tax cut reduces the price of commodities, which are also part of the index.
Source: Notícias Agrícolas (*Translated by Ia Niani)