Oct 17, 2024
Mato Grosso Fertilizer Imports Decline 4.8% from Jan. through Sept.
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
From January through September of 2024, Mato Grosso imported 4.51 million tons of fertilizers, which represented a decline of 4.8% compared to the same period last year. Nationwide, Brazil's fertilizer imports were down 1.5% for the same period.
One of the reasons for the reduction was a delayed start to soybean planting due to hot and dry conditions in central Brazil. With soybean planting delayed, farmers are worried that the safrinha corn planting might be delayed past the ideal planting window making them more cautious with their fertilizer purchases.
Other problems for farmers in Brazil are low commodity prices and a lack of credit availability. The Central Bank of Brasil (Bacen)is estimating a 35% reduction in rural credit nationwide for the 2024/25 growing season. In Mato Grosso, the reduction is even greater at 46%.
After several difficult production years in a row due to adverse weather and low commodity prices, many farmers are unable to access credit to finance their 2024/25 production.
This could be particularly important for safrinha corn that will be planted next January and February after the soybeans are harvested. Many farmers lost money on their 2023/24 safrinha corn due to delayed planting and a premature end to the summer rainy season. Safrinha corn planting could be delayed again this growing season leaving farmers uncertain about their safrinha corn acreage.
Farmers in Mato Grosso will have a better idea about their safrinha corn acreage once they have completed their soybean planting. Soybeans in Mato Grosso were 9% planted as of late last week compared to 35% a year earlier.