Producer purchasing power for fertilizer acquisition falls in February.

Prepared by Mosaic, the Fertilizer Purchasing Power Index (IPCF) closed February at 1.28, compared to 1.20 in January. An index above 1 means that input prices have risen. In the IPCF, the lower the index, the better the terms of trade for the producer. During the period, the index reflected movements in fertilizer prices and exchange rates. Among the main products traded on the international market, urea, monoammonium phosphate (MAP), single superphosphate (SSP), and potassium chloride (KCl) showed price adjustments throughout the month. In the exchange rate, the dollar registered a variation of close to 3% against the real, in an environment marked by the maintenance of high interest rates in Brazil. In the international scenario, the fertilizer market continues to operate in a context of limited supply in some origins, adjusted stock levels, and active demand in different regions, in addition to geopolitical tensions in areas relevant to global supply, especially in the Middle East. Among the agricultural commodities tracked by the index, sugarcane and cotton showed positive variations during the period, while soybeans and corn registered adjustments in their prices. In the case of soybeans, the movement occurs in parallel with the progress of the harvest in Brazil, with expectations of a high yield. For corn, the market is monitoring the start of planting the second crop, which this year is delayed in some regions compared to the previous cycle's schedule. In Brazil, monitoring the progress of the soybean harvest and the planting of the second crop remains one of the factors present in the dynamics of the index's formation in the short term. Understanding the IPCF The IPCF is published monthly by Mosaic and consists of the relationship between fertilizer price indicators and agricultural commodities. The methodology consists of a comparison to the 2017 base, indicating that the lower the ratio, the more favorable the index and the better the terms of trade. The IPCF calculation takes into account the main Brazilian crops: soybeans, corn, sugar, ethanol, and cotton.

This text was translated by machine from Brazilian Portuguese.