Commodity prices exported by Brazil exceeded expectations by the end of 2021, showing positive movements that had not been recorded in years. The expectation is that the pace of valuation will slow down, but, according to analysts, the room for expressive devaluation is still restricted.Demerara sugar finished the year with an average price 38.5% higher than the previous year in New York (17.78 cents per pound). This is the highest value recorded since 2016, which is probably associated with the increase in oil prices and its consequences to the ethanol market. As projections point to a global deficit in the 2021/22 harvest, largely thanks to Brazil, the margin for retraction is narrow. In the case of soybeans and corn – noted that Brazil is the global leader of soybean shipments and is trying to become the second-larger exporter of corn. The results recorded in 2021, as well as prospects for 2022, point out that Brazilian exporters do not have much to complain about commodity prices given that the current levels will help offset a good part of the losses recorded in crops due to the weather, even though rising input costs have already started to squeeze profit margins.
Sources: Valor Econômico/Datamar News