Fertilizer Purchasing Power Index remains stable in August

The Fertilizer Purchasing Power Index (IPCF) for August 2024 closed at 1.11, remaining stable compared to July. The result reflects the decline in the price of commodities and some fertilizers. 

In the case of commodities, the drop was 2,23% for corn and 2,16% for soybeans. Fertilizers saw an average reduction of 1,15%. The decline was led by the price of potassium chloride (KCl) of 3,30%, followed by the price of urea of ​​2,92%. Monoammonium phosphate (MAP) and single superphosphate (SSP) saw increases of 0,2% and 2,24%, respectively, but were not enough to reverse the drop in the overall average for the month. 

The figures from the United States Department of Agriculture (USDA) reveal optimism about the American harvest. In Brazil and throughout South America, projections also remain positive, with adjustments for the second harvest. The market remains attentive to the soybean planting in Brazil, which should begin in the next few days. The scarce rainfall in some regions of the country may delay the planting. This entire scenario puts pressure on the prices of soybeans and corn. In August, there were some positive peaks motivated by the rise in the dollar, which allowed some negotiations in real (R$) to be more advantageous. During the period, the American currency varied by approximately 0,2% at a time of greater concern about the deficit in Brazil's internal accounts and global uncertainty caused by the tension in the scenario of the elections in the United States.