Strong devaluation of the real raises soybean prices on the domestic market

  • Boi: market awaits resumption of exports to China
  • Corn: Cepea indicator has a slight low
  • Soybeans: Real devaluation brings strong increase
  • Coffee: exchange rate offsets drop in New York
  • Abroad: stocks continue to fall in the US
  • In Brazil: negative exterior and political uncertainty bring the stock market below 114 thousand points

Schedule:

Brazil: data from crops in Rio Grande do Sul (Emater)

Brazil: August IPCA (IBGE)

Brazil: updated estimate for the 2020/21 grain harvest (Conab)

Boi: market awaits resumption of exports to China

According to Safras & Mercado consultancy, the slowness persists in the physical cattle market after the September 7 holiday. According to analyst Fernando Iglesias, large Brazilian slaughterhouses are absent from cattle purchases and are still waiting for the resumption of beef exports to China.

At B3, on the other hand, the quotes of cattle futures contracts had another day of high volatility and the curve had a devaluation. The maturity adjustment for September went from BRL 306.60 to BRL 301.25, in October it went from BRL 308.35 to BRL 305.05 and in November it went from BRL 316.00 to BRL 313, 45 per at sign.

Corn: Cepea indicator has a slight low

The Cepea corn indicator, calculated based on prices in Campinas (SP), had a day of slightly lower prices. The price varied -0.19% compared to the previous day and went from R$92.5 to R$92.32 per bag. Therefore, in the year, the indicator had a high of 17.38%. In 12 months, prices reached 57.44% appreciation.

On the Brazilian stock exchange, B3, corn futures contracts continued to recover, with only the January maturity showing a slight drop. The maturity adjustment for September went from R$92.02 to R$92.71, from November it went from R$92.24 to R$92.66 and from March 2022 it went from R$94.18 to R$ 94.26 per bag.

Soybeans: Real devaluation brings strong increase

The Cepea soybean indicator, calculated based on prices practiced at the port of Paranaguá (PR), had a strong increase with the great devaluation of the real against the dollar on that day. The price varied 1.74% compared to the previous day and went from R$169.07 to R$172.02 per bag. Thus, in the year, the indicator had an increase of 11.77%. In 12 months, prices reached 27.26% appreciation.

On the Chicago Stock Exchange, the prices of soybean futures contracts had only a slight increase, which was far from offsetting the drop observed in the previous day’s trading, after the Labor Day holiday. November maturities rose 0.19% yoy and rose from $12.77 to $12.794 a bushel.

Coffee: exchange rate offsets drop in New York

According to Safras & Mercado, coffee prices on the Brazilian market had a high day, with the exchange rate offsetting the drop in New York. In the south of Minas Gerais, the good drink arabica with 15% cleaning increased from R$1,080/1,090 to R$1,085/1,095, while in the cerrado of Minas Gerais, the hard drink with 15% cleaning was unchanged at R$1,090/ 1,100 per bag.

On the New York Stock Exchange, Arabica coffee prices had a weak day and prices returned to the level of US$ 1.90 per pound, again without having managed to sustain above US$ 2.0 per pound. The maturity for December, the most traded currently, retreated 1.93% in the daily comparison and went from US$1.9395 to US$1.902 per pound.

Abroad: stocks continue to fall in the US

The JOLTs report set a new record for the number of job offers with 10.934 million in July, up from 10.185 million in June in the United States. The indicator calculation includes all vacancies that were open on the last working day of the month analyzed. The result was much higher than expected by market analysts, who projected 10 million.

The analysis of these numbers, added to the latest job creation results released last week, show the difficulty of the US economy in filling jobs. In relation to the markets, the three main stock indices of the United States devalued.

In Brazil: negative exterior and political uncertainty bring the stock market below 114 thousand points

With negative exterior, lack of harmony between the powers in Brazil and threat of strike among truck drivers, the Ibovespa had a day of sharp decline. The main stock index on the Brazilian stock exchange dropped 3.78% in the daily comparison and was quoted at 113,412 points. Meanwhile, the commercial dollar rose 2.89% and went from R$5.177 to R$5.326.

According to the Getulio Vargas Foundation (FGV), the IGP-DI increased from 1.45% in July to -0.14% in August and was below expectations, which projected a rise of 0.05%. With this result, the index accumulates a positive variation of 15.75% in the year and 28.21% in 12 months. The strong deceleration of the indicator was mainly caused by the drop in the price of iron ore.