The demand for fertilizers in Brazil will increase 1.5% this year, from 36.1 million tons registered in 2019 to 36.7 million tons. The estimate is from the Dutch bank Rabobank, which published on Thursday the semiannual report “Fertilizer Outlook” with the prospects for the market at a global level in 2020. The flagship for the increase in Brazilian demand promises to be the soy market. According to Rabobank, the margins of soybean producers, and also of corn, for the 2020/21 harvest have been projected above the average of the last five years, which should stimulate an increase in the planted area and in fertilizer applications. With regard to imports of these inputs, Brazilian purchases totaled 11.5 million tons from January to May, an increase of 12% in comparison with the same period last year. The increase reflects the drop in fertilizer prices in dollars at historically low levels, which has led many producers to anticipate their purchases. In addition, the covid-19 pandemic was another trigger of anticipation, given the fear of facing logistical problems. However, in relation to the production of fertilizers in Brazil, Rabobank projected an increase of 15% in 2020 compared to 2019, to 7.8 million tons.
Source: Valor Econômico