Yara review projection to 1% drop to 3% in deliveries in 2017

The delay in the marketing of grain of the crop 2016/2017 because of the lower prices will be reflected in the delivery of fertilizers, which can fall between 1% and 3% compared with last year, estimated the President of Yara fertilizers, Brazil Hanzen Lair. In conversation with the Broadcast Agro, real-time news service of the State Group, during the seventh Brazilian Congress of fertilizers, held on Tuesday, 29, in Sao Paulo, he said that the company's results tend to track the performance of the market. As the year was record harvest, there was a growth projection of demand for fertilizers. "We started with a very high expectation, after good results in 2016 and remunerative prices on major crops. The situation signaled another positive year for agriculture and, consequently, to fertilizers. However, prices of some commodities fell back, as well as the value of the inputs, and, as the producer was capitalized, might postpone purchases, "said Hanzen. "We can estimate that, differently than we expected, there will be no growth in the consumption of fertilizers during the year or there will be a reduction," he emphasizes.
The National Association for the diffusion of fertilizers (come on) is more optimistic. At the same Congress, the Chairman of the Board of Directors of the Organization, Carlos Henrique Dantas Heredia, said he expects stable sales this year, in line with the 34.1 million tonnes delivered to the final consumer in 2016.
As the Executive Officer of Yara, which can change the scenery and drive sales of fertilizers will be the second crop of corn, in the final stages of harvest. If the producer expect to negotiate the cereal and get more remunerative prices may invest more in technology to yield 2017/18. "In other cultures, the main negotiations have already been made. (For the fertilizer sector) a good part of the year is already set, "adds the President of Yara.
Second Hanzen, financial results of the off-season will be measured in mid-November. So far, prices are not attractive for the farmer. In Mato Grosso, according the Institute Mato-Grossense Agricultural Economy (Investigation), corn prices closed the week down 1.60% compared to the previous one, the $12,08/sack. For the contracts that will be delivered in July 2018 indentation is 9.1%, to $13,77/sack.
Despite the negative projections to 2017, the President of Yara says that over the past 20 years, the fertilizer sector of Brazil has an average growth of 3% per year, which represents approximately 1 million tons/year. To him, it can be said that 2018 will bring recovery.