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Brazil's benchmark stock index plunged after Justice Minister Sergio Moro quit, and the real weakened to a record low against the dollar. Analysts cited renewed uncertainty over President Bolsonaro's governance.
Political turmoil driving the real to record lows makes Brazilian exports such as soybeans and meal cheaper in dollar terms, which can pressure global feed prices while raising import costs for Brazil's feed buyers.
apnews.comDIANE JEANTET, DAVID BILLER, MAURICIO SAVARESEApr 24, 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.
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.
Moro's exit renewed political uncertainty over Bolsonaro's governance, driving risk-off capital outflows from Brazilian assets and weakening the real to a record low.
The same Moro resignation raised doubts about Bolsonaro's governance, pushing the Bovespa sharply lower and the real to a record low, reflecting risk-off sentiment and foreign outflows that weakened the currency.
