Fertilizer prices rise with war between Russia and Ukraine
sexta-feira, fevereiro 25, 2022
Fertilizer prices in the Brazilian physical market already reflect the uncertainties of global supply with the war between Russia and Ukraine.
According to data from the consultancy StoneX, one of the daily price indicators reported urea at US$ 635 per ton CFR port Brazil on Thursday (24). The value is $65 per tonne higher than reported on Wednesday, at $570 per tonne.
"The indexes show an increase, but prices tend to continue to rise," says Marcelo Mello, Director of Fertilizers at StoneX.
Another weekly indicator points to an average urea of $605 per tonne this week, up $55 per tonne from the previous week.
"This indicator shows the average of the week, so it reveals a minor effect on prices as futures increases occurred as of Tuesday. Certainly, we are above this level at the moment," Mello said.
The rise in prices in the physical market accompanied the significant increase in fertilizer futures contracts listed in the CME Group in the United States. Phosphorus derivative contracts also rose in the face of the escalation of the crisis.
Another impact observed in the Brazilian market is the absence of some business mixers. The decline is due to uncertainties about what levels fertilizer prices can reach before making sales for future delivery, according to Mello.
"They first tend to talk to suppliers abroad by the beginning of next week to try to understand the impact and normalize marketing," he said.
Russia
Russia is one of the largest players in the international fertilizer market. It is the world's second largest exporter of nitrogen and the third largest global exporter of phosphates and potassium, contributing 16% of the exported fertilizers in the world.
The country is the main supplier of fertilizers to Brazil, with about 20% of the volume internalized annually.
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