October IPCF closes at 1.01

The Fertilizer Purchasing Power Index (IPCF) for October 2024 closed at 1.01, a 3% reduction compared to September, when it was at 1.05. This drop in the indicator shows an even better time for rural producers to purchase the input, since the lower the indicator, the better the exchange rate.

In October, there was an average increase in commodities of around 0,6% compared to the previous month. The increase was led by sugarcane, with an increase of approximately 1,5%, and a brief increase in soybeans of around 1%. Corn, on the other hand, recorded a drop of 6,3%, and cotton fell by around 1,8%.

Fertilizer prices fell by around 1% compared to September, with urea rising by 6% due to the purchase window for the second crop. The index is also weighted by the exchange rate. During the period, the dollar rose by around 1,5%, remaining stable compared to the previous month, but reflecting a greater risk scenario and some impact from the US elections.

The market remains attentive to the end of soybean planting in Brazil and the development of the harvest, as well as the weather. At the moment, rural producers are planning the purchase of inputs so that they can receive fertilizer within the planting window for the second corn crop, avoiding delays due to potential logistical backlog at the peak of the harvest, mainly due to the few options for imports to enter through ports to meet the large volume needs in such a short planting window.