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The Brazilian real hit a two-month low against the dollar, with the dollar rising more than 1% to 4.2720 reais, near its record high. The real has fallen 6% this month amid coronavirus-driven risk aversion and a wider current account deficit.
A weaker real makes Brazilian soybean, corn and meal exports more competitive on world markets, which can pressure dollar-denominated feed prices lower. Expected Selic rate cuts add to the currency weakness.
en.mercopress.comJan 31, 2020After 301 past bullish macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.7%), and +1.0% over 20.
After 117 past bearish macro events, Soybean Meal moved a median -0.6% over 5 sessions (41% higher; middle half -2.5% to +1.7%), and +0.5% over 20.
After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
