Brazilian G&O Monthly Update – October 2020
Our latest progress 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 up 15% MOM and 87% YOY. In addition to the currency devaluation (from BRL 5.32 in September to BRL 5.60 in October), the rally in CBOT prices and tight local stocks pushed prices higher.
• Brazilian corn farmgate prices rose 15% MOM and 93% YOY, reaching record nominal values, boosted by higher demand at ports, local demand, and farmers’ unwillingness to sell.
• Brazilian soybean exports reached 79.2mmt in 2020 (Jan to Sep), a volume 7% higher than all of 2019 (Jan to Dec).
• Although corn export volumes increased 5% MOM in September, to 6.6mmt, the total amount for 2020 (Jan to Sep) is 30% lower than the same period in 2019.
• Cumulative rainfall in the first half of October was below the historical average for Mato Grosso, impacting soybean plantings in the state, which reached 3% – 14 percent points lower than the same period’s average for the past five seasons.
Where to go from here
Victor IkedaSenior Analyst - Grains & Oilseeds