Fertilizer Purchasing Power Index for December points to an increase in the market

The Fertilizer Purchasing Power Index (IPCF) for December closed at 1,69, a slight increase compared to November (1,67).

prices of commodities agricultural products, mainly sugar, ethanol, soybeans and corn, showed a slight drop, in dollars, in relation to the previous month, due to reduced domestic demand and the proximity of the arrival of a new grain harvest.

In the international fertilizer market, there is still little purchasing activity in most of the main consuming regions. While on the supply side, each nutrient has faced a particular challenge: Nitrogenous remains the most volatile nutrient, so the upward trend was reversed due to the decline in natural gas prices in line with an excess supply in the last Indian tender . Potassium, there is great concern regarding supply from Belarus and export blocking actions. Phosphorus, the market remains firm in the absence of one of the largest producers: China.

It is worth noting that the profitability of the main crops in Brazil in 21/22 should be positive, driven mainly by the devalued Real and good international prices of the main commodities.

The index is released monthly by Mosaic Fertilizers, one of the largest global producers of combined phosphates and potassium. The index consists of the relationship between fertilizer price indicators and commodities agricultural.

Understanding the IPCF

The IPCF is released monthly and consists of the relationship between fertilizer and agricultural commodity price indicators. A ratio less than 1,0 indicates that fertilizers are more affordable than in the same period in 2017, and a ratio greater than 1,00 means that fertilizers are less affordable compared to the same period.

The IPCF calculation takes into account the main Brazilian crops: soybeans, corn, sugar, ethanol and cotton.