Tidbits, Brazil Currency, Argentine & Aussie Crops, Crop Progress, ENSO, Export Inspections 10/27/26
Tidbits
Brazil is the world’s largest exporter of soybeans and a major exporter of corn, beef, cotton, sugar, coffee, and other products that compete head-to-head with U.S. output. When the real weakens, Brazilian farmers receive more reals for the same dollar-denominated global price. This cushions them against lower commodity prices and encourages them to sell more aggressively.
Sunday morning, it took 4.9652 reals to buy a U.S. dollar.
Monday evening, it took 5.3771 reals to buy a U.S. dollar.
That is an 8.3% depreciation of the Brazilian real versus the dollar in one day. The dollar now buys significantly more reals, so Brazilian goods become cheaper when priced in dollars, which hurts U.S. agriculture.
Brazilian exports become more competitive on world markets. Buyers (especially in China and other import-dependent countries) can source from Brazil at a better price in dollar terms. If soybeans are $12 a bushel on the world marketplace, Brazil’s soybeans became 99¢ cheaper than U.S. soybeans for foreign buyers. That is why soybean futures were under-pressure yesterday.
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