After the post-pandemic and economic problems, the price of soy should have balanced out on the global market. However, the cost of production is below this level in Brazil, with some places already registering a bag below BRL 150 Brazil is experiencing a “problem” due to the tendency toward a deflation of the dollar in the global macroeconomic framework. According to Fabricio Morais Rosa, executive director of the Brazilian Association of Soy Producers, “After the pandemic, crises, and conflicts, as well as competing interests, the trend is for the world to begin stabilizing. The balance is currently trending toward being below BRL 200. It might stay at BRL 150 or BRL 160, I’m not sure. For producers, it creates challenges”.
Source: Canal Rural (*Translated by Ia Niani)