South America Calling

Brazilian fertilizer sales were strong in September, despite low grain prices, as farmers geared up to plant summer crops.

Sales totaled 3.91 million metric tons in September, up 8.5% compared with August and 9.4% higher than in September 2013, according to the Brazilian Fertilizer Distribution Association (ANDA).

In the first nine months of 2014, sales totaled 23.7 mmt, up 7.3% on the same period one year before.

Demand for fertilizers is driven by soybean farming at this time of year. Brazil is expected to increase planted area by approximately 5% and appears to be maintaining the level of input investment despite a decline in international prices.

Overall, Brazil is expected to increase fertilizer sales by around 4% to 32 mmt in 2014 with sugarcane following grain farming as the main client.

(AG)

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