South America Calling

Brazilian fertilizer sales bounced back last month, indicating farmers are investing in crops again after cutting back last year.

April sales rose 1.57 million metric tons, up 13.7% on the same month last year, said the Brazilian Fertilizer Distributors Association (ANDA).

The figures indicated that low March sales were likely a blip and confirmed the upward trend in fertilizing.

In the first four months of the year, sales totaled 7.5 mmt, up 8.2% on the year.

Fertilizer sales dropped in 2015 due to a combination of lower grain prices and an economic crisis in Brazil, which caused the availability of credit to decline in the first half of the year.

But producers appear to recognize that after under-fertilizing last year, they will need to invest in their soil this year to ensure good crops.

In the January-April period, nitrogen fertilizer sales were up 6.9% at 1.24 mmt, driven by demand for second-crop corn, coffee and early soybean market deliveries.

Potassium fertilizer sales rose even more, up 14.1% at 1.12 mmt, on the same factors.

Phosphate fertilizer sales were up just 2.4% in the period at 879,000 metric tons.

Fertilizer production, on the other hand, has slumped with output down 6.9% at 2.71 mmt in the first four months of the year.

(CZ)

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