Oct 03, 2024
Brazil Farmers Slow to Purchase Fertilizer for 2024/25 Safrinha Corn
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Brazilian farmers have been slow to purchase the inputs needed for the 2024/25 safrinha corn crop that will be planted next January and February after the soybeans are harvested. According to data from the consulting firm Agrinvest, Brazilian farmers have purchased 42% of the fertilizers needed for the 2024/25 safrinha corn, which is equal to last year but 13% below the 5-year average.
The main reason for the slow purchasing is the delay in soybean planting in the state of Mato Grosso, which is Brazil's largest soybean and safrinha corn producing state. The state has suffered from hot and dry conditions since late April and only now the state is receiving some widely scattered light showers. The forecast is calling for increased chances of rainfall starting next week.
Farmers in Mato Grosso had planted only 0.5% of their intended soybeans as of late last week compared to 4.1% last year and 2.8% average according to the Mato Grosso Institute of Agricultural Economics (Imea).
Farmers in other large safrinha corn producing states such as Parana and Mato Grosso do Sul have only purchased 20% of their needed fertilizers according to the Director of Distribution for Mosaic.
Soybean planting in the state of Parana has leaped ahead with recent rains and the crop is now 22% planted compared to 20% last year.
Approximately 80% of Brazil fertilizers are imported and if purchases are delayed too long, there is a concern that bottlenecks will develop at Brazilian ports. Currently, water levels on rivers in northern Brazil are very low which has resulted in a suspension of barging operations on the Maderia River and a 40% reduction in tonnages for barges on the Tapajos River. Both rivers are used to transport fertilizers to northern Mato Grosso and the state of Rondonia.