Tridge summary
The article highlights the impact of the devaluation of the dollar on the Brazilian agricultural sector, specifically focusing on the pressures it puts on import parity. The dollar's drop of 3.3% against the Real within a week has led to increased costs for producers and a shift in their attention towards cultivation for the new season and sales of the summer crop. This has resulted in a reduction in liquidity available in the national spot market. Additionally, the prices of flour have risen due to high raw material costs and anticipated positive adjustments by mills in April. On the other hand, managing costs and finding profitable prices for bran has become challenging as alternative animal feed substitutes are available at lower prices.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
According to information from Cepea, the pressure comes from the continuous devaluation of the dollar, which puts pressure on import parity. Between March 28 and April 4, the dollar dropped 3.3% against the Real, closing at R$ 4.612 on Monday, 4th. Producers were even further away from the national spot market, starting to focus on the cultivation of new season and, in some cases, in the sale of products from the summer crop, a scenario that reduced liquidity. Last week, the prices of flour continued to rise, due to the high cost of raw materials and the fact that some mills have ...
Source: Portal Do Agronegocio
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