South America Calling
Kieran Gartlan DTN South America Correspondent

Thursday 12/17/09

Brazil Fertilizer Sales Up 6% In October

Brazil' fertilizer sales totaled 2.9 million metric tons in October, or 6 percent higher than in September, according to the latest report from the national fertilizer producers association, known as Anda.

October sales were the highest monthly volume so far this year and surpassed October 2008 sales by 44 percent.

The bulk of Brazil's soybean planting takes place in October and November, and while fertilizer is normally purchased months in advance, due to poor logistics, the numbers indicate that this year many farmers waited until the last minute to buy inputs as prices continued to slide in the second half of the year.

According to the local Scot consultancy, prices have been falling mainly due to a stronger local currency, which makes imports cheaper. Local fertilizer prices are now at the same level as in 2007, with nitrogen costing an average $500/metric ton and potash around $740/mt.

Despite strong sales in October, the accumulated figure for the first ten months of the year, at 19 mmt, is still 6.3 percent behind last year's sales volume.

Analysts believe the reduction in sales this season is due to lower fertilizer use by corn producers due to low corn prices on the local market. Corn is currently trading at $3.60/bushel in Parana and $2.40/bu in Mato Grosso.

Anda sees Brazil's 2009 fertilizer sales totaling around 22.2 mmt, or 1 percent lower than last year's sales. Local production is seen at around 8 mmt, or 35 percent of consumption, with the remainder being imported.

Posted at 10:38AM CST 12/17/09 by Kieran Gartlan
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