The rise in the dollar made Brazil reach a record in grain exports in the first half of 2022. In an interview with CNN This Sunday (14), the president of the Rural Union of the Upper Northwest (Siran), Thomas Rocco, celebrated the results, but said he was worried about the results of the next harvest in view of the exchange rate variation.
“Our grain was worth more reais than it was worth in recent years, this brought a positive reflection”, said Rocco. The justification pointed out by the president of the union is the high of the dollar in relation to the real.
“We live in a global agribusiness. So, basically, quotations are formed in the foreign market and all of them are based on dollars. So, in the first half of the year, we experienced an appreciation of the exchange rate and this brought, at first, a positive reflection for the livestock activity and for us rural producers”, says Rocco.
as showed the CNN , the 2022 agricultural crop is expected to total 263.4 million tons, up 4.0% from the 2021 result, equivalent to 10.2 million tons more, according to the Systematic Survey of Agricultural Production (LSPA) of July, released this Thursday (11) by the Brazilian Institute of Geography and Statistics (IBGE). If confirmed, it will be a record crop.
According to him, however, the second half is worrying. This is because the cost of production has increased and producers do not know what the exchange rate will be next year, when they will sell their grains in dollars. According to Siran’s president, the global and domestic scenario also brings uncertainties to the producer.
“We are immersed in a series of issues, so we look at the war in Ukraine and Russia, which has an impact on stock markets around the world. You look inside the country and you have an election year. Rural producers are always worried in election years, because there are uncertainties”, evaluates Rocco, who points out uncertainties regarding the interest rate.
*Posted by Daniel Reis
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
