Sanctions on BPC raise potash prices and puts soy farming at risk in Brazil

The prices of potash products will go through a prolonged rise after the US’s sanction imposition on one of the item’s major global suppliers, the Belarus Potash Company (BPC). This action puts pressure on farmers and consumers who already face rising costs and food inflation globally.

The price of the fertilizer, which plays a vital role in crop productivity, was already at a 13-year high before the US decided to sanction BPC on Dec. 2. Now, prices are expected to rise even further, potentially slowing the pace of soy acreage in Brazil in 2022/23 – the world’s largest producer and exporter of the oilseed, analysts said.

A slowdown in the expansion of crop areas in Brazil, which uses a lot of potash products to convert pastures into soy crops, could interrupt several years of planting growth and potentially would further lead to increased soybean prices.

See below a track record of Brazilian potash imports starting from 2019. Data are from DataLiner:

Brazilian Potassium Imports (NCM 3104.20) | Jan 2019 to Oct 2021 | WTMT

Source: DataLiner (click here to request a demo)

The sanctions in place against BPC would increase the world’s dependability on other suppliers, such as Canada’s Nutrien Ltd, the world’s largest potash producer.

The company could bring its factory plant’s idle capacity back to the market if necessary, a Nutrien spokesman told Reuters.

Nutrien shares prices have risen 6.6% since the BPC sanctions were announced, a record for the company.

Source: Money Times

To read the full original article visit the link: https://www.moneytimes.com.br/sancoes-a-bpc-elevam-preco-de-potassio-avanco-da-soja-no-brasil-em-22-23-em-risco/

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