Fertilizer Purchasing Power Index registers an increase of 8% in June 2024

The Fertilizer Purchasing Power Index (IPCF) for June 2024 reached a value of 1.05. This result represents an increase of 8% compared to last month, when the index was at 0.97. Although the drop in average commodity prices and the increase in the average price of fertilizers contributed to the increase in the IPCF, there are positive aspects to be highlighted in this scenario.

The average price of commodities showed a slight drop of -4%, led by sugar cane (-5%), followed by cotton (-4%), corn (-4%) and soybeans (-3%). However, corn and soybean markets were under pressure due to expectations of a robust American harvest, which remain positive. Furthermore, production prospects in Argentina and Brazil are also promising, contributing to a favorable scenario in the medium term.

The average price of fertilizers rose by around 5%, highlighted by the 15% increase in urea, 5% in monoammonium phosphate (MAP) and 4% in simple superphosphate (SSP). In the period analyzed, the dollar increased by around 5%, but the market is attentive to the movements of the Brazilian Central Bank in relation to the Selic rate and the government's economic guidelines, which aim to stabilize the currency and control inflation.

The harvest in the United States continues to have good prospects, and negotiations and planting intentions for the next Brazilian harvest are underway, showing positive signs. There are expectations about the harvest productivity figures for the second Brazilian harvest, however the total volume to be harvested may be impacted by the lack of rain in some regions.

Despite a slight delay in the commercialization of fertilizers for the second harvest (24/25) compared to history, the importance of advance planning by farmers to guarantee the necessary supply and avoid setbacks stands out.