there is still no reason to panic, says BTG – Money Times

Cattle Agribusiness
Over the last few years, similar cases have occurred that mostly only brought noise, considers the bank (Image: Unsplash)

Rumors of a case of “mad cow” in Minas Gerais brought volatility to the agricultural market this early September. There is little care in sanitary issues, but the market was already pricing: business in the physical and in the future of the B3 (B3SA3), the Brazilian Stock Exchange, plummeted.

futures of cattle, traded on the stock exchange, for October slipped 4%, while the shares of Minerva (BEEF3), one of the big refrigerators Brazilians listed on B3, only accumulate low in the month.

Despite the ardor in the market, analysts of BTG Pactual (BPAC11) still see no reason for widespread panic among investors.

Over the past few years, similar cases have occurred that mostly only brought noise, considers the bank.

“One of the main ones happened in 2012 when some countries temporarily banned imports of Brazilian beef, but our impression is that in this case the problem was not the sanitary event itself, but the time it took for the Brazilian authorities to notify international bodies”, recall the analysts in a report obtained by the Agro Times.

For specialists, the current case, as well as all the previous ones, seems to be an atypical case of the disease, and not caused by the ingestion of animal products, a practice that is prohibited in the Brazil since the 90s.

If confirmed, it would reinforce the rating of the OIE (World Organization for Animal Health) of negligible risk for mad cow disease in Brazil.

The name of the Plena Alimentos slaughterhouse, from Belo Horizonte, was aired. Money Times was the first in the newsr, with the company’s denial that he would be involved.

Given the relevance of exports of Brazilian beef for world trade (23% of the total), and taking into account that Brazilian authorities have yet to take a stand on the mad cow case, BTG analysts warn that more volatility could still happen and risks of embargoes exist.

Interview: how to invest in agro in 2021?

O Money Times talked to Jojo Waschmann, CIO of Vitreous, to understand what is the best way to invest in a sector that does not stop growing in Brazil: agribusiness.

With great prominence in the country, many ask themselves how it is possible to earn money with agricultural commodities, without having to put their own hands on the land.

Knowing this, the manager is launching the Vitreous Agro, managed by BTG Pactual, which is the first multimarket agribusiness fund in Brazil. In him, the minimum investment amount is BRL 100.

According to Waschmann, the fund’s management fee is only 0.9%, that is, for every R$1,000 invested, you pay only R$9.

And the performance fee is 10% on the positive result that exceeds 100% of the CDI, your benchmark.

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