Purchasing power for fertilizers rises 2% in October.

The Fertilizer Purchasing Power Index (IPCF) for October closed at 1,17, registering an improvement of almost 2% compared to the previous month, which was 1,19, maintaining the trend observed in the last report. This variation reflects internal and external factors.

Nationally, the month was marked by the progress of soybean planting, which already covers about 46% of the planned area, with Paraná and Mato Grosso do Sul standing out. Despite the good prospects, the weather is beginning to cause concern, with reports of replanting due to lack of rain and recent storms.

In the international market, negotiations between Brazil and the United States regarding tariffs, coupled with expectations of a trade agreement between China and the US, had a significant impact, especially on soybeans, which once again registered values ​​close to the highest levels of the year. This movement, combined with the accelerated pace of Brazilian planting, brought significant fluctuations in commodity prices. For the month as a whole, there was an average decrease of 1,5%, with corn rising (+0,3%) and declines in soybeans (-0,6%), cotton (-3,2%), and sugarcane (-2,6%).

Fertilizers saw a reduction in the month, with an average drop of 3%. This was observed in declines for urea and MAP, while potassium chloride (KCl) remained stable due to stable global demand for potassium. In the currency market, the dollar registered a slight increase of 0,3%, driven by market adjustments in response to geopolitical conflicts and internal factors. Despite this, the impact on the index was limited, as the appreciation was not enough to offset the fall in raw material prices.

The market is closely monitoring the progress of planting and weather conditions in Brazil, as well as the conclusion of the trade agreement between China and the US, which could redefine global soybean flows and influence prices in the coming months. We are approaching the next second crop season, which is showing good prospects. Therefore, proper planning is important to avoid accumulation during peak months.