Cassava/Cepea: Crushing falls for the 2nd consecutive week in Brazil

Published 2024년 12월 16일

Tridge summary

Heavy rainfall and the withdrawal of most producers have led to a reduction in cassava grinding at starch plants for the second consecutive week, causing a decline in demand. Many plants have brought forward their end-of-year recess, resulting in a 20.6% weekly drop in cassava crushed, with an average idle capacity of 61%. This weakened demand has put downward pressure on cassava prices, but the nominal average forward price for a ton delivered to starch plants rose slightly by 0.11% compared to the previous week, to R$ 700.69 (R$ 1.2186/gram of starch). Compared to the same period last year, the price has appreciated by 12.9%, in real terms.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Heavy rainfall in all regions monitored by Cepea, coupled with the retraction of most producers, who have already finished delivering this year, reduced cassava grinding at starch plants for the 2nd consecutive week. Given the limited supply, many units brought forward the end-of-year recess, also causing demand to decline. Cepea estimates indicate that, between December 9 and 13, 42.8 thousand tons of root were crushed by starch plants, a weekly drop of 20.6%, with an average idle capacity of 61%. Weakened demand pressured cassava prices in most regions, with the nominal average forward price for a ton delivered to starch ...

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