Rising costs of feedstuff become a major concern for Brazil’s industry


MPorto Alegre, November 6, 2020 – Brazil’s meat industry faces a unique situation in the last quarter of 2020. The year alone is already characterized by exceptions to the normal state of markets in all segments. There is an aggressive process of valuation of inputs on a national scale. This movement is pushed by the increase in soymeal and corn, which is justified by different factors:

– Soymeal: In 2020, soybean exports were record-breaking, with China absorbing an unprecedented volume of the Brazilian oilseed. The result is that approximately 98.5% of Brazilian soybeans in the current crop have already been sold, resulting in an unprecedented shortage. Even imports were adopted by the industry to mitigate the effects of the scarcity scenario. The prices of soybeans and their derivatives reached an all-new level in the domestic market;

– Corn: The aggressive upward movement in corn prices concerns the selling decision of growers. In 2020, Brazilian growers are capitalized and can reduce their selling pace. The weather risk accentuates this retention, evaluating the expectation of a very reduced summer crop. Like soymeal, corn prices set a historical record in the last quarter. Even with an excellent second crop of corn in the current year, a bag even surpassed BRL 80.00 in several states in the Center-South.