Brazilian G&O Monthly Update – February 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 soybean farmgate price 1% down MOM, but 15% up YOY – currency rate has been, on average, at BRL 4.30 in February 2020 (vs BRL 3.70 in this same period of last year)

- Brazilian corn farmgate price 1% up MOM and 28% up YOY – tight local stocks, as result of strong (local & external) demand throughout 2019, have been pushing prices up

- Brazilian soybean exports reached 1.5mmt in January 2020, a volume 27% lower than in this same period of last year. It was expected given the slower pace of harvest in comparison to the previous season

- Brazilian corn exports reached 2.3mmt in January 2020, this volume is 41% lower than in this same period of 2019. This was also the second lowest volume for this month since 2013

- Although some regional weather issues, soybean crop conditions (weighted national average) based on weather evaluation was aligned with the 5-year average and better than in the last season