The fertilizer price reduction at the beginning of the year as well as the increasing price of soybean, corn, coffee, and cotton slightly improved the exchange ratio of the end of last year, according to a newsletter published by the agribusiness sector of Itaú BBA. The bulletin affirms that, in Brazil, even with the slight reduction in the exchange ratio, fertilizer purchases are seasonally slow, while price levels are still high. “Given the uncertainties, it is important for the producer to be aware of the opportunities and not ignore the risks of unavailability in case of any logistical disruption that could affect the flow of imports, and the internalization of products”. The document bulletin also informs that intense purchases in Brazil can prevent possible drops, pointing to the factors that can reduce the prices of fertilizers. “The high prices of macronutrients can reduce the demand for fertilizers. With the end of winter in the Northern Hemisphere, natural gas prices tend to cool down, whereas inactive plants tend to return to produce, which will increase the availability of macronutrients, mainly the nitrogen macronutrients”, Itau Bank said.
Source: Jornal Cana (*Translated by Ia Niani)