SAO PAULO, Sept 4 Sales of agrochemicals in
Brazil reached a record 6.7 million reais ($2.85 million) in the
first half of 2013, up 30 percent from a year ago after record
soy and corn crops left farmers well funded and a strengthening
dollar encouraged early sales.
Farmers usually purchase pesticides in the second half of
the year, but producers made purchases of supplies that are
imported and priced in dollars earlier this season as they
watched the local currency weaken, the director of Brazil's
Andef plant defense association said on Wednesday.
The strong dollar benefits farmers who produce and sell
commodities with prices indexed in dollars like soy and corn. It
can also raise the costs of raw materials like fertilizers,
seeds and pesticides.
"This market has a love hate relationship with the exchange
rate," Daher said in Thomson Reuter's Trading Brazil chat room.
He said farmers are bartering such inputs for soybeans and
corn to limit the effect of a volatile exchange rate this
Farmers are well capitalized after selling a record 81.5
million tonne crop at high prices last season and are expected
to expand area planted with soybeans slightly more when sowing
starts in September or October.
An attack by moths in soy crops last year has also
encouraged farmers, who have traditionally worried more about
fungi, to buy more insecticide, Daher said.
Andef represents 13 international companies that sell
pesticides in Brazil.