Fertilizer Purchasing Power Index reaches the best level of the year, favoring the purchase of fertilizers

The Fertilizer Purchasing Power Index (IPCF) closed at 1,21 in October 2022, reflecting an average reduction of 14% in fertilizer prices, compared to the previous month. At the best level of the year, the result further favors the exchange ratio at this time of the end of the summer harvest and preparations for the off-season, especially for rural producers who invest in quality fertilizers to obtain increases in productivity and profitability.

During the period, the average price of commodities recorded an increase of almost 2% in the month, in relation to September, a recovery led by sugar cane, which had an appreciation of 6% in relation to the previous month. The monthly average also took into account the 1% drop in soybeans, caused by the forecast of high availability of the grain with the expectation of a record harvest in Brazil, by the National Supply Company (Conab).

Another factor considered in the composition of the IPCF is the exchange rate, which increased by 0,3% in the dollar, motivated by fears of a global recession, a factor that still shakes the market. In Brazil, additionally, the electoral dispute caused the dollar to vary throughout the month.

Understanding the IPCF

The IPCF is released monthly by Mosaic Fertilizers 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.