Brazilian G&O Monthly Update – July 2022

Our latest report for Brazilian G&O, detailing farmgate prices, amounts sold, exports, and crush margins for corn & soybeans, as well as regional weather developments.

Highlights

- Despite BRL depreciation in July, Brazilian soybean farmgate prices were down 2.8% MOM. Year-on-year, prices were 7% above July 2021.  

- A record corn crop and high domestic freight costs have negatively impacted domestic corn prices. In July, the corn farmgate price is down 7.5% versus the previous month. Similarly, year-on-year prices are 14% below July 2021 levels.

- Brazilian soy exports reached 10m metric tons in June 2022, 5% below May 2022 levels. Poor demand has limited the pace of soybean exports. 

- Accumulated Brazilian corn exports through June reached 6.4m metric tons, 74% above the previous year. A record corn supply and the disruption of Ukrainian corn exports will result in Brazilian exports reaching 42m metric tons in 2022.

- Weather during June 2022 was drier, as expected in the Center-West and Southeast regions. This will favor ‘safrinha’ harvest activities.