Fertilizer deliveries grew 5.5% in November 2024; Fertilizer purchasing power grows in the Brazilian market

The National Association for Fertilizer Distribution (ANDA) has exclusively informed AgroPages that fertilizer deliveries to the Brazilian market ended November 2024 with 4.21 million tons, recording a 5.5% growth compared to 3.99 million tons in the same month of 2023. 

The cumulative total from January to November reached 42 million tons, showing a slight decrease of 0.5% compared to 42.21 million tons in the previous year.

Leading in market deliveries, the Brazilian state of Mato Grosso concentrated the highest volume during the analyzed period (20.8%), reaching 8.74 million tons. Following are the states of Rio Grande do Sul (4.88 million), Paraná (4.64 million), São Paulo (4.50 million), Minas Gerais (4.23 million), Goiás (3.96 million), and Bahia (2.87 million).

The national production of intermediate fertilizers in November 2024 was 621,000 tons, representing 1% growth compared to the same month in 2023. The cumulative total from January to November reached 6.61 million tons, showing 3.5% growth compared to 6.39 million tons in the same period of the previous year.

Intermediate fertilizer imports reached 4.41 million tons in November 2024, indicating a 10.3% increase compared to the same month in 2023, when 3.99 million tons were recorded. The cumulative imports from January to November totaled 37.90 million tons, 6.5% more than the same period in 2023 when 35.58 million tons entered the country.

Nearly 9.35 million tons were imported through the Port of Paranaguá, the main entry point for fertilizers, indicating 10.6% growth compared to 2023. That year, 8.45 million tons were unloaded at the terminal, representing 24.7% of total imports through all ports.

Fertilizer Purchasing Power Index

The Fertilizer Purchasing Power Index (IPCF) for January 2025 closed at 1.09 in Brazil, a 4% increase compared to December 2024. Despite a recovery in some commodity prices, the increase in average fertilizer prices contributed to this month's result.

Brazil's second corn crop is expected to show growth in planted areas compared to the previous season. With the approaching end of the second-crop corn planting window, the importance of farmers planning their input purchasing decisions is highlighted. Given the challenging global geopolitical scenarios, good planning becomes essential to take advantage of buying opportunities and avoid logistical accumulation in fertilizer deliveries while receiving inputs at the ideal application time.

During the period, fertilizers showed an average increase of about 3%, driven by rises in urea followed by potassium chloride (KCl) and single superphosphate (SSP). An average growth of 0.3% was also recorded in the commodities considered for the index.

This stable scenario in commodity prices results from two different situations: a 2% drop in soybean prices due to pressure from expectations of a record harvest in Brazil and a 2% rise in corn prices resulting from growing domestic market demand and crop failures in southern Brazil, Argentina, and Paraguay. Sugarcane and cotton also showed increases of about 1.7% and 2%, respectively.

The market now remains attentive to the harvest pace in Brazil and its possible impacts on the second-crop corn planting window. Attention also turns to expected crop failures in Rio Grande do Sul, Argentina, and Paraguay. Additionally, with planning for the following summer crop, including phosphate products, it is worth highlighting the issue of product quality and solubility, where imports of low-solubility phosphate products have been observed, and producers should be aware of the quality of products being offered.

The IPCF is released monthly by Mosaic and consists of the relationship between fertilizer price indicators and agricultural commodities. The methodology compares against the 2017 base, indicating that the lower the ratio, the more favorable the index and the better the exchange relationship. The IPCF calculation takes into account the main Brazilian crops: soybeans, corn, sugar, ethanol, and cotton.

(Editing by Leonardo Gottems, reporter for AgroPages)