The anticipated record harvest in Brazil is expected to drive fertilizer sales, with deliveries projected at nearly 46 million tonnes. An increase in grain production, coupled with favorable pricing dynamics for farmers, supports this growth. Stable raw material costs further enhance prospects for the fertilizer industry.
Brazil’s fertilizer industry is poised for significant growth due to an anticipated record harvest. Eduardo Monteiro, head of Mosaic’s operations in Brazil and Paraguay, notes that while sales for the current crop cycle have concluded, the impressive yield will likely escalate the demand for nutrients required for the next planting season. “A record harvest means plants will extract more nutrients from the soil. Farmers will need to replenish those nutrients,” stated Mr. Monteiro.
In 2024, Brazil’s fertilizer deliveries are estimated at 45.6 million tonnes, marking the second-highest figure recorded. Mr. Monteiro predicts that deliveries could potentially reach 46 million tonnes, establishing a new record. Additionally, the National Supply Company (CONAB) forecasts that Brazil will harvest 325.7 million tonnes of grains in the 2024/25 cycle, reflecting a promising increase of 9.4% compared to the previous season’s largest harvest of 322.8 million tonnes in 2022/23.
The favorable exchange ratio between grain prices and input costs has also bolstered fertilizer sales since the season’s onset. Although soybean prices have fallen by 3.1% in the last month, they are still 0.5% higher compared to six months ago. Corn prices have similarly dropped by 2.8% recently, but they have surged over 13% in the past six months. Mr. Monteiro, who is also the chairman of the National Association for Fertilizer Distribution (ANDA), remarks that “Corn prices have rebounded strongly. The trend suggests that farmers who grow soybeans in the summer and corn in the second crop will see solid profitability.”
Moreover, the prices of essential raw materials for the fertilizer sector have stabilized or decreased since last year, as observed by Mr. Monteiro, which may further enhance profitability for farmers.
The projected record harvest in Brazil is set to significantly increase fertilizer demand, with potential deliveries reaching new heights. Factors including a favorable exchange ratio for crop prices and stable raw material prices contribute to a positive outlook for the fertilizer industry. With soybean and corn farmers driving demand, the industry appears resilient and positioned for growth in the upcoming planting seasons.
Original Source: valorinternational.globo.com
