High urea and MAP prices pressure IPCF

The Fertilizer Purchasing Power Index (FPPI) for July closed at 1.32, registering a 4.6% increase compared to June. The rise was driven by a combination of high global demand and low supply, in a scenario of instability in the international market. The average 2% drop in commodity prices, led by corn (-5%), cotton (-3%), and sugarcane (-3%), contrasted with the slight increase in soybeans (+0.5%), reflecting the good performance of the crops in the USA and the second crop harvest in Brazil, as well as the uncertainties generated by the U.S. tariffs on the country. In fertilizers, the average increase was 2.6%, with highlights for urea (+8%) and monoammonium phosphate (MAP) (+3%). The proximity of the soybean planting window, coupled with strong demand and reduced supply, sustained the appreciation. In the case of urea, the increase was aggravated by the conflict between Israel and Iran, which affects the production and global availability of natural gas, an essential input for its ...