Corn and soybeans have new casualties; check out the highlights of this second

  • Boi: arroba has sharper lows, says Safras & Mercado
  • Corn: Cepea indicator goes to its lowest level in 50 days
  • Soybeans: falling dollar takes sacks below R$170 at the port of Paranaguá (PR)
  • Coffee: Arabica has strong growth in Brazil and New York
  • Abroad: Powell’s speech and inflation are in line with expectations
  • In Brazil: Ibovespa ends week on a high

Schedule:

  • Brazil: focus report (Central Bank)
  • Brazil: August IGP-M
  • USA: weekly export inspections (USDA)

Boi: arroba has sharper lows, says Safras & Mercado

According to Safras & Mercado consultancy, live cattle prices ended the week with sharper lows due to increasingly comfortable slaughter schedules. In São Paulo, capital, the price went from R$ 312/313 to R$ 312 per arroba, in installments, and in Goiânia (GO), it went from R$ 303 to R$ 299/300. Finally, in Uberaba (MG), the arroba went from R$ 311 to R$ 309.

At B3, the curve for live cattle futures had a day of mixed behavior with adjustments varying between highs and lows, but with small variations. The maturity adjustment for August went from BRL 314.80 to BRL 311.45, in October it went from BRL 314.00 to BRL 314.90 and in November it went from BRL 321.50 to BRL 322. 40 per at sign.

Corn: Cepea indicator goes to its lowest level in 50 days

The Cepea corn indicator had a day of low prices and reached the lowest level since the 7th of July. The price varied -1.26% compared to the previous day and went from R$ 97.06 to R$ 95.84 per bag. Therefore, in the year, the indicator increased by 21.86%. In 12 months, prices reached 57.45% high.

At B3, the corn futures contracts curve continued to trend downwards and prices also reached the lowest level since the beginning of July. The maturity adjustment for September went from R$95.37 to R$95.16, from November it went from R$95.98 to R$95.34 and from March 2022 it went from R$98.07 to R$ 97.43 per bag.

Soybeans: falling dollar takes sacks below R$170 at the port of Paranaguá (PR)

The Cepea soybean indicator for the port of Paranaguá (PR) retreated with the fall of the dollar against the real. The price varied -0.97% compared to the previous day and went from R$ 171.19 to R$ 169.53 per bag. Thus, in the year, the indicator appreciated 10.16%. In 12 months, prices reached 25.77% high.

On the Chicago Stock Exchange, the prices of soybean futures contracts had another day of slight decline. November maturities fell 0.23% to $13.232 a bushel from $13.262 to $13.232 a bushel. The forecast of rains in producing regions in the US put pressure on prices. On the other hand, the announcement of new sales to China prevented further devaluations.

Coffee: Arabica has strong growth in Brazil and New York

According to Safras & Mercado, coffee prices on the Brazilian market had another strong high day, following gains on international exchanges. In the south of Minas Gerais, the good drink arabica with 15% pickup increased from R$1,060/1,065 to R$1,090/1,100, while in the cerrado of Minas Gerais, the hard drink with 15% pickup was R$1,070/1,080 for BRL 1,100/1,110 per bag.

On the New York Stock Exchange, as mentioned earlier, Arabica coffee prices rose sharply and once again surpassed the level of US$ 1.90 per pound after one month. The maturity for December, the most traded currently, rose 2.23% in the daily comparison and went from US$ 1.88 to US$ 1.922 per pound.

Abroad: Powell’s speech and inflation are in line with expectations

The long-awaited speech by US Central Bank President Jerome Powell brought little news. He said that monetary policy is well positioned at the moment, but that given the progress of economic conditions, it may be appropriate to reduce monthly purchases of $120 billion by the end of 2021.

The PCE (Personal Consumption Expenditure) inflation index in the United States grew 0.4% in July month-on-month and 4.2% year-on-year. The core of the indicator, which excludes more volatile items, increased by 0.3% in the month and 3.6% in the year. Both readings were within the expectations of market analysts.

In Brazil: Ibovespa ends week on a high

The Ibovespa ended the week on a high, taking advantage of the positive external scenario with a speech by the president of the FED and inflation within expectations. The main stock index on the Brazilian stock exchange rose by 1.65% and was quoted at 120,677 points. Meanwhile, the commercial dollar fell 1.17% and went from R$5.257 to R$5.196.

The producer price index for July increased by 1.94%, according to the Brazilian Institute of Geography and Statistics (IBGE). The indicator measures the evolution of prices “at the factory door”, according to the IBGE, without taxes or freight. Thus, the IPP already accumulates a positive variation of 21.39% in 2021 and 35.08% in 12 months.