Arroba do boi gordo continued to fall; check out this friday’s highlights

  • Boi: prices continue to fall with comfortable scales, says Safras & Mercado
  • Corn: bag is close to losing the level of R$ 97 at Cepea
  • Soybeans: Dollar Rise Interrupts Sequence of Lows
  • Coffee: prices rise again in Brazil and New York
  • Abroad: US second quarter GDP has positive revision
  • In Brazil: job creation above expectations in July

Schedule:

  • Brazil: July Producer Price Index (IBGE)
  • Brazil: data on crops in Mato Grosso (Imea)
  • USA: July PCE inflation

Boi: prices continue to fall with comfortable scales, says Safras & Mercado

According to Safras & Mercado consultancy, live cattle prices continued to fall in most production and marketing regions. In São Paulo, capital, the price went from R$ 313 to R$ 312/313 per arroba, in installments, and in Goiânia (GO), it went from R$ 304 to R$ 303. Finally, in Uberaba (MG) , the arroba went from R$313 to R$311.

At B3, on the other hand, cattle futures contracts hit an important support in the region of R$ 310 per arroba for the shorter ends and rehearsed a recovery. The maturity adjustment for August went from BRL 311.55 to BRL 314.80, in October it went from BRL 310.75 to BRL 314.00 and in November it went from BRL 318.00 to BRL 321. 50 per at sign.

Corn: bag is close to losing the level of R$ 97 at Cepea

The Cepea corn indicator, calculated based on prices in Campinas (SP), reached the eighth day of decline and was close to losing the level of R$ 97 per bag. The price varied -0.44% compared to the previous day and went from R$ 97.49 to R$ 97.06 per bag. Thus, in the accumulated result for the year, the indicator increased by 23.41%.

At B3, the corn futures contracts curve behaved similarly to the previous day and varied between slight highs and lows. The maturity adjustment for September went from R$95.27 to R$95.37, from November it went from R$96.07 to R$95.98 and from March 2022 it went from R$98.08 to R$ 98.07 per bag.

Soybeans: Dollar Rise Interrupts Sequence of Lows

The Cepea soybean indicator, calculated based on prices practiced at the port of Paranaguá (PR), ended a negative sequence of five days with the help of the appreciation of the dollar against the real. The price varied 0.12% compared to the previous day and went from R$ 170.99 to R$ 171.19 per bag. Thus, in the year, the indicator had an increase of 11.23%.

On the Chicago stock exchange, the opposite occurred, the prices of soybean futures contracts retreated and lost a sequence of highs that had already lasted three days. November maturities fell 0.48% and dropped from $13.326 to $13.262 a bushel. The scenario in the global financial market with geopolitical uncertainty weighed negatively.

Coffee: prices rise again in Brazil and New York

According to Safras & Mercado, after a period of stability, coffee prices in the Brazilian market rose again, following the gains in New York. In the south of Minas Gerais, the good drink arabica with 15% pickup increased from R$1,050/1,060 to R$1,060/1,065, while in the cerrado of Minas Gerais, the hard drink with 15% pickup was R$1,060/1,070 to BRL 1,070/1,080 per bag.

On the New York Stock Exchange, the prices of Arabica coffee futures continued to approach the level of US$ 1.90 per pound and marked the fifth consecutive day of appreciation. The maturity for December, the most traded currently, rose 0.89% in the daily comparison and went from US$ 1.8635 to US$ 1.88 per pound.

Abroad: US second quarter GDP has positive revision

The second reading of second quarter GDP in the United States had a positive revision compared to the first preview, according to data from the BEA (Bureau of Economic Analysis). Annualized growth went from 6.5% to 6.6%, but still below market analysts’ projections, who had expected a 6.7% increase.

Despite the positive review of US economic growth, the troubled geopolitical scenario with the attacks in Afghanistan weighed negatively on the market. The three major US stock indices closed the day down between 0.54% and 0.64%. On today’s agenda, the Jackson Hole symposium and US inflation data stand out.

In Brazil: job creation above expectations in July

Brazil registered the creation of 316,580 formal job vacancies in July, according to the General Register of Employed and Unemployed Persons (Caged). The result was a positive surprise and was above expectations, which projected 250,000 jobs. In the accumulated result for the year, the country now registers a positive balance of 1,848,304 jobs with a formal contract open.

Geopolitical tensions interrupted the Brazilian stock market’s recovery sequence. The Ibovespa closed down 1.73% and was quoted at 118,723 points. Meanwhile, the commercial dollar rose 0.87% and went from R$5.211 to R$5.257. Today, the Brazilian Institute of Geography and Statistics (IBGE) releases the producer price index for July.