The Brazilian Fertilizer Purchasing Power Index (IPCF), calculated by the multinational Mosaic, closed at 0.99 points in January.
The indicator’s average is the best of the last 19 months. The input is vital for agriculture.
The company released the data on Monday, 6.
According to the survey methodology, values below 1 indicate more favorable results for farmers.
From this level down, the exchanges are considered positive. In December 2022, the number closed at 1.02.
In January 2021, the average was even higher: 1.42.
“The result at the beginning of the year is due to the higher reduction in fertilizer prices (-2%) compared to that of agricultural commodities (-1.5%), in addition to the drop in international logistics costs of sea freight and taxation at Brazilian ports,” Mosaic said in the statement.
The company also explained that the improved purchasing power of fertilizers is linked to lower dollar prices and lower global demand for components such as urea, potash, and phosphate.
“The Brazilian market demanded more for phosphates than the global market, while the demand for potash was stable,” he added.
“Lower global demand for nitrogenates and reduced natural gas influenced fertilizer production costs.”
For the year, however, the CPI closed at 1.47. It is the highest annual average since 2019.
The increase occurred mainly due to the high results of the year’s first half.
With information from Revista Oeste