IPCF INDICATES POSITIVE MOMENTUM FOR FERTILIZER PURCHASES FOR THE 2025/26 SUMMER HARVEST

In August, the Fertilizer Purchasing Power Index (IPCF) fell nearly 4% to 1.27, driven by higher commodity prices and lower fertilizer costs. Soybeans, corn, and sugarcane rose by 4%, 3%, and 4% respectively, while cotton dropped 4%. Mosaic attributed the improvement to global factors such as U.S. trade tariffs, USDA’s soybean stock revisions, and stronger Chinese demand for Brazilian crops, alongside a 1.5% drop in the dollar. Fertilizer prices declined 1.5% on average, influenced by supply-demand shifts and the proximity of Brazil’s 2025/26 planting season. However, the company warned that only about 10% of fertilizers for the soybean crop remain to be negotiated, with states like Rio Grande do Sul, Minas Gerais, and Goiás playing a decisive role. Tight credit conditions and stricter financial rules continue to restrict financing, raising concerns about timely input deliveries as the summer crop planting begins in September.
Source: Nova Can