Brazil faces a serious lack of rain, causing problems for farmers who are now delaying buying fertilizer for planting corn. This delay is impacting fertilizer sales worldwide. Top executives from companies like Nutrien, Mosaic, and Yara told Reuters they’re worried about how the delay in Brazil’s soybean harvest might affect fertilizer sales. This delay might also push back the planting of the main corn season, which usually comes right after the soybean harvest. Since corn needs a lot of fertilizer to grow, the lack of rain is making farmers buy less.

The dry weather in Brazil, linked to El Niño, highlights farming’s unpredictability, causing lower profits for fertilizer firms. After the Russia-Ukraine war, crop and fertilizer prices fell. If Brazilian farmers delay planting corn, they might sow less, reducing fertilizer needs. Mosaic forecasts a significant 4% drop in Brazil’s second corn harvest, equating to 500,000 fewer tons of potash fertilizer, valued at about $160 million. By early December, Brazilian farmers had bought only 60% of their usual fertilizers, potentially leading to a major 75% decrease in corn production. This drop could impact global corn prices, influencing American farmers to reconsider fertilizer purchases, despite initial inclinations towards soybeans needing less fertilizer.