Oct 13, 2022
Fertilizer Warehouses at Brazil Ports Full, Vessels Turned Away
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
After the start of the war between Russia and Ukraine and the subsequent sanctions levied against Russia and Belarus, Brazilian farmers were concerned if they would be able to obtain the fertilizers needed to plant their 2022/23 crops. Those concerns were legitimate at the time, but they have proven to be unfounded.
In fact, the fertilizer situation in Brazil is just the opposite of what had been feared. Instead of a shortage of fertilizers, Brazil is now awash in fertilizers to such an extent that the warehouses at the ports are full and vessels transporting fertilizers are being turned away at the ports and redirected to other countries.
According to National Association of Fertilizer Distributors (Anda), during the first nine months of 2022, Brazil imported a record volume of 30.77 million tons of fertilizers. Vessel lineups for October and November indicate that the import pace may now start to slow down.
Brazil has recently turned away two vessels due to a lack of storage space at the Port of Antonina in Parana. A vessel with 24.7 thousand tons of DAP fertilizers from Jordan was diverted to Turkey instead. In September, a vessel with 17 thousand tons of phosphate fertilizer sat in the harbor for two months before being rerouted to the U.S. This is the first time anyone in Brazil can remember this occurring.
Contributing to the over supply of fertilizers is the fact that Brazilian farmers are expected to reduce their fertilizer purchases by 5-7% due to higher fertilizer prices and increased cost of production. Brazil normally imports approximately 85% of its needed fertilizers.