Last Tuesday, February 27, with the news of Chinese economy retreat, prices decreased in most of the Brazilian regions. Due to this fact, the ESALQ/BM&F Index (Campinas region) dropped 1.3 percent in Real and 3 percent in dollar from Monday to Wednesday, closing at 20.57 reals or 9.70 dollars per bag of 60 kilos. Specialists, however, point that this movement is atypical.
The recently strong raises at the Chicago Mercantile Exchange (CBOT) have been softening the decreases of Brazilian prices during this harvest period. In the accumulated of this month, the Index decreased 16.24 percent in Real or 16.12 in dollar. However, the valuations of 0.1 percent in Real and 0.34 percent in dollar last Monday can show a firm market - prices in Campinas were decreasing since the end of January.
During last week, the exchange rate averaged 2.08 reals per dollar, however in this week, the Real devaluated against the dollar, with the currency settled at 2.12 reals per dollar last Wednesday.
At the CBOT, corn contract for March/07 has been at around 4.30 dollars per bushel, the highest price since July of 1996. The upward trend is related to the higher United States' demand by corn in order to ethanol producing.