Tidbits, Brazilian Real, Futures Account, FOB 12/8/25
- Wright team
- 11 minutes ago
- 4 min read
Сurrency & Prices
We mentioned on Saturday that the Brazilian currency was sharply lower on Friday, making Brazil’s products cheaper to buy for foreign buyers compared to U.S. products. Susan Stroud of No Bull Ag reported Brazil’s currency lost 2.3% versus the dollar on Friday. Despite CBOT January soybeans settling 14¼¢ lower on Friday, Brazil’s soybeans gained about 11¢. Here is the math:
If soybeans were $11 a bushel in the U.S. on Friday and the exchange rate of Brazil’s reals to the dollar lost 2.3%, then Brazilian soybean price compared to U.S. beans were 2.3% cheaper at the end of the day. On $11 beans, 2.3% is 25.3¢. Even if Brazil’s beans were priced to a foreign buyer from the CBOT prices, Brazil’s farmers had a good day Friday because they gained 25.3¢ on the exchange rate and lost 14.25¢ on the CBOT for a net gain of 11¢ a bushel.
Last winter, the real began an uptrend versus the dollar in late December, which made Brazil’s beans progressively more expensive, which kept U.S. bean prices from dropping in January and February as Brazil harvested its largest bean crop ever.
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