Brazilian G&O Monthly Update: October 2019

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 farmgateprice is up 2% MOM, but down 1% YOY

- 42% of the projected second corn crop production in 2020 has been sold in Mato Grosso (pre-harvest sales), which is 18pp above the five-year average for this period of the year.

- Brazilian corn exports reached 30.2mmt in 2019 (Jan-Sep), surpassing the record volume reached in 2017 (Jan-Dec) of 29.3mmt.

- Soybean planting in Mato Grosso reached 19% of the expected area, 8pp below the percentage for the same period last season, but it is aligned with the five-year average.

- Crushing margin estimates are lower than in the same period last year and below the last 12-month average in most of the regions, given low local stocks and soybean valuation.