International Fertilizer and Agriculture News - August 12

Brazil July Inflation Slows to 4.44%

Brazil’s inflation rate slowed to an annualized 4.44% in July, as lower housing costs helped offset higher electricity bills. National statistics agency IBGE said on Tuesday that the IPCA consumer price index slowed from 4.64% in June and 4.72% in May. The latest decline brought inflation within the central bank’s target range of 1.50%-4.50%. Food and beverage costs had a major impact on the index and were the main driver of the monthly IPCA slowdown, with the annual rate falling to 3.4% in July from 3.82% in June. IBGE said falling coffee, fruit, and vegetable prices largely drove the decline. Housing costs were the largest monthly contributor to the index increase in July, with inflation accelerating to an annualized 5.93% from 5.85% a month earlier, mainly because of electricity bills and tax adjustments in some southern states. Transportation costs slowed to an annualized 3.64% in July from 3.95% in June. Although airfares rose, lower prices for ethanol, diesel, gasoline, and compressed natural gas weighed on motor fuel costs. The annual increase in July was lower than the 5.23% recorded in July 2025. The central bank expects inflation to reach 5.03% in 2026, above the expected range of 1.5%-4.5%. It also forecasts inflation at 4.22% in 2027 and 3.8% in 2028. At its latest meeting last month, Brazil’s central bank cut its target interest rate to 14%, the fourth reduction since March, after maintaining it at 15% since mid-2025 to curb inflation.

Pupuk Indonesia Completes Initial DAP Procurement Round

Market participants said state-owned fertilizer group Pupuk Indonesia completed the initial bidding round for its DAP procurement tender on August 10. The company issued the tender on August 7 to purchase 90,000 tonnes of light-colored or yellow granular 16-45 and/or 18-46 DAP on behalf of four subsidiaries, with shipments scheduled from September to November. The date for price submissions in the electronic auction round has not yet been announced. Offers must be submitted on a CFR basis for 18-46 DAP. Offers for 16-45 DAP should be converted into equivalent 18-46 DAP prices. Pupuk Sriwidjaja Palembang (PSP) is seeking 30,000 tonnes of DAP, scheduled for delivery to Boom Baru Port in six shipments of 5,000 tonnes each from September to December. Petrokimia Gresik (PKG) is seeking one 20,000-tonne DAP cargo, scheduled for October delivery to Gresik Port. Pupuk Kalimantan Timur (PKT) is seeking DAP deliveries to Bontang Port through two monthly shipments of 10,000 tonnes each from October to November. Pupuk Kujang (PKC) is seeking 20,000 tonnes of DAP, scheduled for shipment in September and November to Tanjung Priok and/or Cigading Port. Pupuk Indonesia’s previous DAP tender was for 45,000 tonnes on July 16, with an offer price of 877 USD/tonne.