Agrimoney
Brazil's ports are becoming congested with fertilizer shipments just as sugar merchants are gearing up for a rise in sugar imports.
Leading crop analyst Michael Cordonnier warned of delays of up to 23 days in ships waiting to unload fertilizer at Brazilian docks, to feed demand for nutrients expected to hit a record 25.9 Mt. this year, up from 24.5 Mt. last year.
The holdups come when sugar investors are keeping a close eye on Brazilian port congestion for fear of a repeat of the queues last year, which delayed significantly shipments of the sweetener from the world's top exporter.
Sucden Financial's Thomas Kujawa said there was "chat of a lineup of ships building up in the Brazilian ports."
Paranagua, Brazil's main fertilizer-handling port, is also one of the two top sugar ports, with Santos—which also handles big quantities of fertilizer.
Brazil's increasing fertilizer appetite comes as its farmers seek to raise yields to capitalize on elevated crop prices, which on Monday rebounded on futures exchanges from a sharp selloff last week.
Further, farmers are buying their fertilizer earlier this year—again, a pattern being repeated abroad amid fears of a 2008-style ramp-up in nutrient prices.
While Brazil's growers have typically bought 35% of nutrients in the first half of the year, this proportion might reach 45% in 2011, Cordonnier said.
Strong Demand
A rise in Brazil's fertilizer imports to meet rising demand has been confirmed both by ANDA, the domestic industry association and Vale, which late Friday forecast a 15% rise in potash imports this year, alongside rising prices.
"Potash prices have been rebounding, influenced by the surge in food prices," Vale said.
"Two of the key crops for potash, corn and sugar cane, have their prices at levels above the peaks of 2008. . .demand is very strong."
Brazil's ports are becoming congested with fertilizer shipments just as sugar merchants are gearing up for a rise in sugar imports.
Leading crop analyst Michael Cordonnier warned of delays of up to 23 days in ships waiting to unload fertilizer at Brazilian docks, to feed demand for nutrients expected to hit a record 25.9 Mt. this year, up from 24.5 Mt. last year.
The holdups come when sugar investors are keeping a close eye on Brazilian port congestion for fear of a repeat of the queues last year, which delayed significantly shipments of the sweetener from the world's top exporter.
Sucden Financial's Thomas Kujawa said there was "chat of a lineup of ships building up in the Brazilian ports."
Paranagua, Brazil's main fertilizer-handling port, is also one of the two top sugar ports, with Santos—which also handles big quantities of fertilizer.
Brazil's increasing fertilizer appetite comes as its farmers seek to raise yields to capitalize on elevated crop prices, which on Monday rebounded on futures exchanges from a sharp selloff last week.
Further, farmers are buying their fertilizer earlier this year—again, a pattern being repeated abroad amid fears of a 2008-style ramp-up in nutrient prices.
While Brazil's growers have typically bought 35% of nutrients in the first half of the year, this proportion might reach 45% in 2011, Cordonnier said.
Strong Demand
A rise in Brazil's fertilizer imports to meet rising demand has been confirmed both by ANDA, the domestic industry association and Vale, which late Friday forecast a 15% rise in potash imports this year, alongside rising prices.
"Potash prices have been rebounding, influenced by the surge in food prices," Vale said.
"Two of the key crops for potash, corn and sugar cane, have their prices at levels above the peaks of 2008. . .demand is very strong."
