While the prices of commodities agricultural products, mainly soybeans and corn, showed a slight drop in relation to October, due to reduced domestic demand, the fertilizer market registered an increase, continuing with a tight global balance between supply and demand for all product lines.
Additionally, macroeconomic issues linked to China's energy matrix, substantial increase in natural gas and geopolitical uncertainties in the flow of global exports, influenced the index. The exchange rate, another factor considered in the composition of the index, did not show significant fluctuations.
It is important to highlight that the profitability of the main crops in Brazil remains positive, driven by international prices of commodities agricultural and the current exchange rate. In this scenario, there is optimism for the 2021/2022 harvest, which should be a record in terms of planted area and applied technology.
The index is released monthly by Mosaic Fertilizers and 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.
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