Brazilian G&O Monthly Update – April 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.

Highlights

- The Brazilian soybean farmgate price is up 6% MOM and 27% YOY, reaching record nominal values, in BRL terms, in most of the producing regions. The currency rate has been, on average, at BRL 5.20 in the first half of April 2020 (vs. BRL 3.90 in the same period last year).

- Farmers are selling (2019/20 soybean season) at the highest levels for this period of the year in Mato Grosso (75%) and Paraná (54%).

- Brazil exported 11.6mmt of soybeans in March 2020, the second largest monthly amount on record (only behind May 2018). The total volume exported in Q1 2020 reached 17.9mmt, 14% more than in the same period last year.

- Second crop corn conditions – based on evaluation of the weather – are below the five-year average, given lower-than-historical rainfall volumes in March 2020 in most of the producing regions. The situation in Paraná requires monitoring, given the low rainfall in the past 30 days.