Aug 06, 2010
Brazilian Farmers Are Aggressively Purchasing Inputs for 2010/11 Crops
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Even though temperatures have been very cold in southern Brazil and current soybean prices in Brazil are lower than they were last year at this time, Brazilian farmers have been aggressively purchasing the needed inputs for their 2010/11 crops. Data released by the Brazilian National Association of Fertilizer Distributors indicate that during the first half of 2010 Brazilian farmers took delivery of 4.2% more fertilizer than during the same period in 2009. The fertilizer distributors have already delivered 8.62 million tons of fertilizers for all types of crops compared to 8.27 million tons delivered during the first half of 2009.
Seed dealers are indicating the same trend in their sales as well. The Brazilian Seed Association is reporting that 70% of the seeds needed for the 20010/11 growing season has already been sold. This compares to just 40% that was sold last year at the same time.
Some analysts feel the robust fertilizer sales have been helped by farmers buying their fertilizers ahead not just for the 2010/11 crop but also for the 2011/12 growing as well. Farmers in Brazil can receive a 15% discount if the fertilizer is purchased ahead and paid for.
As a testament to just how cold it has been in southern South America this winter, snowfall was reported again this week in the higher elevations of Rio Grande do Sul and Santa Catarina. Snowfall is a very rare occurrence in southern Brazil, but this is the second or third time it has happened in just the last month.