Brazilian G&O Monthly Update – June 2021
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.
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• Brazilian soybean farmgate prices were down 3% MOM but still up 73% YOY. Despite higher CBOT levels, Brazilian real strength pressured domestic prices.
• Similarly, Brazilian corn farmgate prices were 7% lower MOM but still up 117% YOY. Real appreciation pressured prices to lower levels despite dryness-related yield issues cutting the production outlook.
• Farmer selling of corn is at 77%, 8% below last year’s levels. Drier-than-normal weather and expectations of harvesting a smaller crop are reducing the pace of farmer sales of ‘safrinha.’
• Brazilian soy exports in May 2021 achieved a record 16.4m metric tons, unchanged month-on-month and 16% above May 2020. Cumulative exports of Brazilian soybeans from Jan-May reached 48.3m metric tons, 2m metric tons above last season’s record of 46m metric tons.
• Risks to corn yields increased in all-important ‘safrinha’ corn-producing regions due to dry weather, as rains in most regions have been below average since February 2021.
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Marcela MariniSenior Analyst – Grains & Oilseeds Read more