Amid positive grain production projections, the agribusiness scenario in Brazil was strengthened by conservative estimates by the United States Department of Agriculture (USDA). In addition, the high Chinese demand for grains, combined with heated global imports, increasingly favor exporters in Brazil.
The USDA released expectations of planted areas below expectations in the US. After analyzing production scenarios in the midst of this low availability of planted land, it is estimated that the US will have to reduce its soy exports to guarantee the supply of the domestic market. Thus, an increase in exports in other countries such as Brazil is expected, in addition to the possibility of an increase in the Chicago stock exchange.
At the same time, China remains a strong consumer of grain due to the need for animal feed and other factors. At the same time, global demand remains heated, which further intensifies the positive scenario for Brazil.
After the release of IBGE and Conab grain production estimates, it is noted that Brazil is going through an extremely positive moment. In addition to the external factors presented, increasing adjustments in crop estimates in line with the favorable weather of recent months, show that the country is heading towards a possible historical record. Given these facts, there is no doubt that Brazil has vast growth potential and that agribusiness is essential for this.
