Study: Falling Brazilian real will make up grain price drop

Study: Falling Brazilian real will make up grain price drop

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From WATTAgNet:

A study by the University of Sao Paulo says the depreciation of Brazilian currency will make up for the drop in grain prices, which will benefit Brazil.

The study says export prices on soybeans should remain among the lowest since 2010, between $23.60 and $24.80. Soy oil prices are expected to fall from $794 per ton in January to $747 per ton by April, but the fall of the real against the U.S. dollar will compensate for the drop.

The study also predicted that the U.S., Argentina and Brazil will have record grain harvests in 2014-15. Another report by the National Agriculture Federation predicts a 2.7 percent increase in the gross value of Brazil’s farm production in 2015. Brazil’s harvest for 2015 is expected to be a record 200 million tons.

Falling currency could benefit Brazilian farmers

The depreciation of the Brazilian currency will make up for the drop in grain prices, ultimately benefiting Brazil, one of the world’s largest producers, a University of Sao Paulo, or USP, study found. The USP study projected that the United States, Argentina and Brazil would have record grain harvests in the 2014-2015 season.

Read more at FOX News

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