- Boi: arroba steeper bottoms, say Safras & Mercado
- Corn: Cepea index goes to 50-day low
- Soybeans: The falling dollar takes bags below R$170 at the port of Paranagua (PR)
- Coffee: Arabica saw strong growth in Brazil and New York
- Abroad: Powell’s speech and inflation in line with expectations
- In Brazil: Ibovespa ends the week at the highest level
- Brazil: Summary Report (Central Bank)
- Brazil: August IGP-M
- USA: Weekly Export Inspections (USDA)
Boi: arroba steeper bottoms, say Safras & Mercado
According to Safras & Mercado Consulting, live cattle prices ended the week sharply lower due to increasingly relaxed slaughter schedules. In São Paulo, the capital, the price went from R$312/313 to R$312 per Aruba, in instalments, and in Goiânia (GO), the price went from R$303 to R$299/300. Finally, in Uberaba (MG), the value of Arroba increased from 311 R$ to 309 R$.
In B3, the cattle futures curve was a day of mixed behavior with varying adjustments between highs and lows, but with small differences. The maturity adjustment for August increased from R$314.80 to R$311.45, in October it moved from R$314.00 to R$314.90 and in November it increased from R$321.50 to R$322.40 per tick.
Corn: Cepea index goes to 50-day low
Cepea corn index had a day of lower prices and reached its lowest level since July 7th. The price varied by -1.26% compared to the previous day and increased from R$97.06 to R$95.84 per bag. Therefore, the index rose in the year by 21.86%. In 12 months, prices have risen to 57.45%.
At B3, the corn futures curve continued its downward trend and prices also reached their lowest level since the beginning of July. Maturity adjustment for September moved from R$95.37 to R$95.16, as of November it increased from R$95.98 to R$95.34 and as of March 2022 it increased from R$98.07 to R$97.43 per bag
Soybeans: The falling dollar takes bags below R$170 at the port of Paranagua (PR)
Cepea soybean index for the port of Paranagua (PR) fell as the dollar fell against the real. The price varied by -0.97% compared to the previous day and increased from R$ 171.19 to R$ 169.53 per bag. Thus, the index rose during the year by 10.16%. In 12 months, prices are up 25.77%.
On the Chicago Stock Exchange, soybean futures prices were down slightly on another day. November maturities fell 0.23% to $13,232 a bushel from $13,262 to $13,232 a bushel. Precipitation forecasts in US production areas have put pressure on prices. On the other hand, the announcement of new sales to China prevented further cuts.
Coffee: Arabica saw strong growth in Brazil and New York
According to Safras & Mercado, coffee prices in the Brazilian market saw another strong rally, following gains on international stock exchanges. In southern Minas Gerais, a good Arabica increased by 15% from R$1,060/1,065 to R$1,090/1,100 while in Cerrado in Minas Gerais, a strong drink was up by 15% by 1%. SAR070 / R$1,080 Rl 1,100 / R$1,110 per bag.
On the New York Stock Exchange, as mentioned earlier, Arabica coffee prices rose sharply and again crossed the $1.90 level after one month. The December maturity, currently the most traded, is up 2.23% in a daily comparison and has risen from $1.88 to $1,922 a pound.
Abroad: Powell’s speech and inflation in line with expectations
The long-awaited speech by US Central Bank President Jerome Powell brought little news. He said monetary policy is in good shape at the moment, but given advancing economic conditions, it may be appropriate to reduce monthly purchases by $120 billion by the end of 2021.
US PCE inflation grew 0.4% in July on a monthly basis and 4.2% on an annual basis. The core of the index, which excludes the most volatile elements, rose 0.3% in the month and 3.6% in the year. Both readings were within market analyst expectations.
In Brazil: Ibovespa ends the week at the highest level
Ibovespa ended the week higher, benefiting from a positive external scenario with a speech by the Fed Chairman and inflation within expectations. The main stock index of the Brazilian Stock Exchange rose 1.65% and was trading at 120,677 points. Meanwhile, the trade dollar fell 1.17% and rose from R$5.257 to R$5.196.
The producer price index for July rose 1.94%, according to the Brazilian Institute of Geography and Statistics (IBGE). The index measures price development “at the factory door,” according to IBGE, without taxes or freight. Thus, the IPP already accumulates a positive variance of 21.39% in 2021 and 35.08% in 12 months.
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