In February, the Fertilizer Purchasing Power Index (IPCF), which had previously stood at 0.99 in January and 1.02 in December, reached a low of 0.98. The current situation is the most advantageous of the previous 20 months; the better the exchange ratio, the lower the indicator, and it reflects the strong profitability of the rural producer. The prices of fertilizers slightly decreased in the index’s composition by 2%, primarily due to nitrogen. On the other hand, commodities’ costs remained virtually unchanged, reducing by 0.3% from the previous month. Market attention is currently on the Brazilian grain crop, which faces challenges from climate change factors, including the drought in southern Brazil and Argentina and the possibility of a record harvest.
Sources: Mosaic Fertilizantes/Notícias Agricolas (*Translated by Ia Niani)