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Strong dollar raises Brazilian agchem prices

Pesticide prices are on the rise in Brazil, business newswire Diário do Comércio & Indústria reports. The recent increase in the value of the US dollar has added to pricing pressures from “soybeans and petroleum”, it notes. Production costs related to pesticides are rising due to the high level of imports, which account for the majority of such products in Brazil. The newswire claims that prices in Mato Grosso state had risen by 35% after currency effects in the year to April 2012 after currency effects. The impact from the exchange rate is already being felt in negotiations between distributors and the multinational agrochemical suppliers for purchases in mid-2012. Several distributors are seeking to close deals as soon as possible, anticipating costs to be passed on. However, the agrochemical industry trade association, the Sindag, notes that an enduringly strong dollar should encourage farmers of key crops to invest in produce that would bring strong export values.


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