Brazilian G&O Monthly Update – May 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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- The Brazilian soybean farmgate price (in BRL) is up 7% MOM and up 43% YOY, reaching a new record (nominal) value. The currency rate devaluation remains, pushing prices up – it was, on average, BRL 5.73 in the first half of May 2020.
- The high level of soybean prices (in BRL) for the 2020/21 season has been accelerating farmer selling. In Mato Grosso, 37% of the projected output is already sold (pre-harvest sales), 30pp above the five-year average for this period of the year.
- Brazilian soybean exports reached 16.3mmt in April 2020, 73% higher than in the same period last year. This volume was also a monthly record, 32% above the level exported in May 2018, the former record volume for one month (12.4mmt).
- The rainfall volumes in April 2020 (and even in the first half of May 2020) were lower than historical levels in most of the producing regions, which negatively impacted second crop corn conditions, based on weather evaluation.
Where to go from here
Victor IkedaSenior Analyst - Grains & Oilseeds Read more