Brazil‏ian fertilizers market remain strong

From January to April in 2014, the purchases of fertilizers reached 7.8 million tons, an increase of 8.1% compared to the same period of last year. There was also a hike of imports, points Rabobank, in its quarter report released recently .

"In the first four months of 2014, the volume imported grew 27% compared to 2013. As a result, the stocks of fertilizers in Brazil remain considerably high. This fact, aligned with the fall of international fertilizers, can promote a good moment for the acquisition of manure by Brazilian farmers in the coming months. However, if the forecast of a higher dollar is confirmed, this effect can be null", adds the Rabobank report.

"The strong demand for fertilizers at the beginning of 2014 indicates a level of confidence of the Brazilian farmer towards the next season", analyzed the agriculture-oriented bank.

Lower prices

The trend of lower international prices of fertilizers must continue in the next quarter, evaluates Rabobank. With the reduction of export rates, China should hike the global offer of nitrogen and phosphatic, increasing even more the global values of urea, MAP and DAP.

"After planting the 2014 crop, the end of the fertilizers purchases peak in the United States also imposes an oppositional tone in the market. For nitrogen, the deepening conflict in Ukraine could reduce the global offer and ease the downward trend of urea prices", says the bank.

The financial institution points out that that, "after an intense fall, the potassium prices will have more stability in the coming months. The control of stocks combined with a firm Brazilian demand, can foster some support to prices".

However, the global chains continue to be relatively supplied and this impedes any firmer recovery of international values in the short-term".