CONAB highlights impact of restrictions on fertilizer trade

The international fertilizer market has raised concerns about the national supply of these inputs. However, the volume of imports in Brazil continued at a record pace in October and is already consolidated as the highest volume on record, as highlighted in the logistics bulletin of CONAB (the national supply company), a monthly publication with data on the grain freight market and information about Brazilian agribusiness logistics.

The market’s concern in relation to the supply of fertilizers comes from the fact that China and Russia have announced restrictions on exports, the latter being the main supplier to Brazil.

See below the main origins of the fertilizer imported by Brazil in the first nine months of 2021. Data are from DataLiner:

Origins of Brazilian Fertilizer Imports | Jan to Sept 2021

Source: DataLiner (click here to request a demo)

Even so, the volume of fertilizer imports in the country reached the record level of 33.8 million tons in October, signifying a greater investment in the current crop and an indication of an increase in the planted area of ​​the main national commodities, such as soybeans and corn.

According to the bulletin, the current global scenario may create more concern for supply in the coming months and, perhaps, for the next year. However, the Brazilian government has already started negotiations with the Russian government and companies in order to guarantee a regular supply of fertilizers.

At the current pace, the country may import more than 35 million tons of fertilizer in the coming months, mainly because producers are capitalized and encouraged to invest in planting, despite the significant rise in fertilizer costs.

The logistics bulletin uses the state of Mato Grosso as an example. From January to October this year, the main producer of corn, soybeans, and cotton in the country imported 6.6 million tons of fertilizer, an increase of 35.8% compared to the same period of the previous year.

On most of the surveyed routes, freight remains low, given the off-season period in the main producing areas; this reduces interest in grain cargo handling. But a price increase is expected when the soybean harvest begins, not only because the harvest is expected to register a record production volume, but also due to the impacts of increases in fuel prices.

Source: Rural Channel

To read the full original article, visit the link:

https://www.canalrural.com.br/noticias/conab-destaca-impacto-das-restricoes-no-comercio-de-fertilizantes/

Sharing is caring!