In August, moreover, prices of soy Brazilian prices rose slightly, with an increase of 0.7% compared to the previous month, according to a study by Marcela Marini, Grains and Oilseeds analyst at Rabobank. This adjustment, after all, was largely influenced by the devaluation of the real, which helped boost commodity prices in the domestic market. The weaker Brazilian currency consequently increased the competitiveness of Brazilian products in the international market, reflected in higher prices.
On the other hand, in the same period, corn prices also registered a significant increase of 4% compared to the previous month. Again, the depreciation of the real played an important role, sustaining high corn prices and positively impacting the amounts paid to producers and exporters.
On the other hand, in terms of exports, it is correct to state that Brazil shipped 11.2 million metric tons of soybeans in July 2024, marking a reduction of 16% compared to the previous month. However, despite this decrease, year-to-date exports are 4% above last year, evidencing a recovery compared to the reduction in production for the 2023/24 season.
Brazil's corn exports in July totaled 3.6 million tons, down 16% compared to July 2023. Year-to-date, exports are 25% below the previous year. The combination of a smaller Brazilian crop and a larger harvest in Argentina caused the market to turn to more economical alternative sources. This impacted external sales.
Source: Leonardo Gottems | agrolink
