Cassava Flour Wholesale Price Declined by 64.31% YoY in Brazil

Brazil witnessed a sharp decline of 64.31% YoY in cassava flour wholesale prices, attributed to significant progress in cassava harvesting, resulting in a surplus and subsequent price reduction. The average price of starched cassava, a crucial input for flour production, also dropped by 6.8% WoW and 58.5% YoY. Conversely, Vietnam experienced a surge in cassava exports in Jan-24, reaching a record 76 thousand mt, up by 30.9% YoY, potentially affecting Brazil's export competitiveness due to the decline in global cassava prices.
In W10, the wholesale price of cassava flour in Brazil has experienced a significant decline of 64.31% year-on-year (YoY), reaching levels observed in July-21. The primary driver behind the price decline is the substantial progress in cassava harvesting. This has resulted in greater availability of raw material for processing into cassava flour, leading to a market surplus and subsequent price decrease. The average price of a metric ton (mt) of starched cassava, a key input for cassava flour production, dropped by 6.8% week-on-week (WoW) and a staggering 58.5% YoY (adjusted for inflation). The Feb-24 average price further substantiates the downward trend, exhibiting an 11.9% month-on-month (MoM) decrease compared to the previous month. Advancement in cassava harvesting, led to a larger supply of cassava for processing into flour. On the other hand, Vietnam experienced a surge in cassava exports in Jan-24, reaching a record high of 76 thousand mt, representing a 30.9% YoY increase. This growth has also highly contributed to a decrease in global cassava prices, potentially impacting Brazil's export competitiveness.