Cassava market in Brazil: High supply keeps prices declining but at a slower pace

Published 2024년 2월 14일

Tridge summary

Despite a high supply, cassava prices are showing signs of recovery in some markets, according to Cepea. This is due to producers' concerns about potential drops in profitability, leading to increased interest in commercialization. In the starch segment, a 57% production increase in January 2024 resulted in a 22% increase in domestic availability, causing buyers to purchase smaller volumes and exert pressure on prices. The pasta and bakery sectors were the most active, with limited future delivery sales as agents chose to delay acquisitions until after the carnival period.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In the last week, even with a still high supply, cassava prices experienced a lower intensity drop, showing signs of reaction in some markets surveyed by Cepea. Researchers highlight that producers, despite the drier climate in some areas, showed interest in commercialization, motivated by the concern to avoid more significant drops in profitability. In the starch segment, the transition of stocks from December 2023 to January 2024, together with a significant 57% increase in production in the first month of the year, resulted in a 22% increase in domestic availability. This scenario has led buyers to purchase only small volumes, putting continuous pressure on prices. In the physical sphere, the most active sectors ...

Source: Portal Do Agronegocio