Demand for fertilizer gives sign of reaction

The pace of decline in deliveries of fertilizer blenders to resellers in the country has cooled down in June. A survey released yesterday by the National Association of broadcasting fertilizers (Come) pointed out that sales of input last month totaled 2.7 million tons, only 0.6% below the volume of June 2014. In may, the segment recorded a much more expressive in comparison with the same month of the previous year to 21.4%.
With this reaction in June, the supply of fertilizer in the first half also decreased the difference over the same range of 2014, with a total of 11.7 million tons, lower 9.6%. From January to may, the reduction was deepest, of 12%.
Affected by lower demand for the grain production and renewal of plantations, phosphate fertilizers had the greatest reduction in sales: 15.4%, to 1.56 million tonnes in the first half. The side buyers, Mato Grosso followed as the highest destination of deliveries during the period, with 2.4 million tons.
The postponement of the acquisitions has been determined mainly by the high dollar against the real. With the weight of the exchange rate, imports retreated 12.8% from January to June, to 9.6 million tons, while in June there has been a rise of 8% on those purchases made abroad, to 2.3 million tons.
Favoured by lower volume brought out, the national production of fertilizer intermediates back up in the accounts of the Walks. The high was 3.2% in June and from 5.1% in the first six months of 2015, to 748.2 thousand and 4.4 million tons, respectively.
With the delay in sales, analysts have indicated a greater concentration of deliveries in the third quarter. However, growing obstacles to receiving the input in time for the beginning of the planting of the crop 2015/16, in September.
The FCStone predicted last month a need for monthly imports for July, August and September in port capacity limit of 2.5 million, 3 million tons. But the think tank revised upwards this projection to 2.7 million to 3.3 million.
Before a probable overload logistics, Mony Belon, an analyst at FCStone, provides for higher costs with demurrage (surcharge for waiting time in ports) and shipping. The climate has not helped: the port of Paranaguá, main entrance of imported fertilizers, facing rain and has more than a million tons of fertilizers waiting for landing.