Brazilian G&O Monthly Update – January 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

- Brazilian corn farmgate price up 5% MOM and up 44% YOY.

- Brazilian soybean exports reached 74m mt in 2019, a volume that is 11% lower than previous year. Soybean export revenues (USD) fell by 21% versus 2018 to USD 26bn.

- Brazilian corn exports reached 43.3m mt in 2019, a record high volume (up 88% YOY). Corn export revenues (USD) increased from USD 4bn in 2018 to USD 7.4bn in 2019.

- Soybean crop conditions based on the weather evaluation for the 2019/20 season are slightly better than in the 2018/19 season, supporting an outlook of a small increase in yields.

- The return of rainfall in the first half of January 2020, improved soil moisture conditions, providing relief from a drought period faced in December 2019 in some producing regions in the Northeast (Matopiba agricultural frontier) and South (mainly in the Rio Grande do Sul state).