Banks closed May with a short position in the spot exchange of S $25.505 billion, the Central Bank reported on Wednesday. At the end of April, that position was short at $29.204 billion. Financial institutions act as counter-parties in foreign exchange transactions. Thus, when there are remittances of foreign currency abroad, they provide dollars to companies and funds.
In another day of exuberant liquidity, with S&P back to September levels, Brazil has just raised $3.5 billion in the international debt market. Demand exceeded $ 9 billion, causing a rare phenomenon: secondary rates continued to close despite the new supply. In the end, the Republic issued $1.25 billion in a five-year bond and $2.25 billion in a ten-year bond.
Source: Brazil Journal
The CNA predicts that agriculture will increase its participation in the sum of goods and products produced in the country. The good harvest and the high dollar should help the sector to register the highest production, in recent years: R$728 billion ($146 bn). The expectation is that 25% of the Brazilian economy will come from the countryside in 2020, it will represent an increase of 11.8% in relation to last year’s production.
The impact of the new coronavirus caused Brazilian economic activity to contract by 7% in April, estimates the Ibre / FGV, which released the first preview of the Economic Activity Index (IAE). The record drop in the historical series is in relation to the result of March, the month that had already suffered less intensely the reflexes of the economic stagnation, with a decrease of 4.6% compared to February.
Source: UOL Economia
Brazil’s corn production in 19/20 is expected to reach a record high of 102.72 million tons, slightly raising its estimate, which last month stood at 102.18 million tons. If the projection is confirmed, the combined production of the two cereal crops in the country should exceed by 1% the historical maximum verified in the previous year driven by a 6% increase in the cultivated area, which reached 18,74 million hectares.
Source: Money Times