Fertilizer Purchasing Power Index falls 3% in November

The Fertilizer Purchasing Power Index (IPCF) for November 2024 closed at 0.98, falling 3% compared to October, when the index was at 1.01. The indicator fell 3% for the second consecutive month, which shows an even better moment for purchasing inputs, since the lower the indicator, the better the exchange ratio for the rural producer.

During the period, there was an average increase in commodities of around 3% compared to the previous month. The increase was led by sugarcane, which rose by approximately 6%, followed by corn, which increased by 4%. Soybean planting is almost complete in several Brazilian states, a factor that puts pressure on prices, as a good harvest is expected from Brazil.

In addition, La Niña is already considered neutral by the main meteorological agencies at this time, which has been helping crops for now. Despite the good expectations for the Brazilian second crop, there were price increases driven by demand from the domestic market, mainly for corn ethanol plants, a factor that has made corn profitability more attractive for producers.

Regarding fertilizers, the average price variation fell by around 2%, led by the 8% drop in urea, followed by single superphosphate (SSP), with a 5% reduction.  

The index is also weighted by the exchange rate. During this period, the dollar increased by around 3%, with the largest increases at the end of the month, after the Brazilian government announced spending cuts and changes to income tax. Now the market continues to monitor the end of soybean planting in Brazil and the development of the harvest, as well as the weather and the planting window for the second crop.