Good morning! Today, Brazil’s commodities are facing threats from several angles. Stock market has its worst showing in over a year. Inflation to cause gloomy Black Friday. Murders on the up in the Amazon.
Many threats to Brazilian commodities
Last month, we showed that Brazil is becoming increasingly reliant on commodities. The trend poses many problems, holding the country hostage to global uncertainties as it has little control over the prices of these basic products. But it also forces Brazil to pivot quickly to a more ESG-centered approach at the risk of losing key markets.
- The European Commission presented a draft bill to minimize any and all EU-driven deforestation, illegal and otherwise. The proposal excludes rubber but covers key Brazil exports such as beef, wood, soybeans, coffee, and cocoa.
- Another threat comes from the U.S., where the National Cattlemen’s Beef Association (NCBA) has urged Secretary of Agriculture Tom Vilsack to “immediately suspend all imports of fresh beef from Brazil.” The association claims it has concerns over whether “Brazil meets the same consumer and food safety standards that we apply to all our trade partners.”
Why it matters. The EU is Brazil’s second-biggest destination for agricultural products, while the U.S. is...