Good morning! Today, droughts in the South continue, affecting agro. Bolsonaro seeks to demonize the left again, hoping for electoral success. Petrobras profits break records among publicly listed Brazilian companies.
Droughts continue to torment soy and corn farmers
While parts of Bahia, Minas Gerais, and Rio de Janeiro suffer from severe rainfall which has caused floods and mudslides, the southernmost state of Rio Grande do Sul is facing extreme drought. In some municipalities, precipitation levels dropped to historic lows — and 414 municipalities have declared a state of emergency.
- Per the National Water Agency (ANA), the entire territory of Rio Grande do Sul was in a drought situation between October 2021 and January 2022. That is the second-longest streak ever to be recorded in Brazil.
Crops. Corn producers in the state are set for losses of USD 440 per planted hectare for the summer harvest, while revenue after discounting direct costs on labor and inputs should fall 47 percent from one year ago, per agro intelligence company Céleres.
- Margins will not be enough to cover costs for most farmers — especially since the price of inputs rose by 86 percent since the last production cycle.
Why it matters. Over one-fourth of...