Brazil: Despite the rains, cassava supply remains low

Despite recent rainfall, cassava sales have not seen a significant boost as producers focus on planting more profitable crops like soybeans and peanuts. Deliveries are being delayed due to low profitability from reduced productivity and starch content. This has resulted in a limited supply, which, combined with strong demand, has caused cassava prices to rise for the 19th consecutive week. The nominal average forward price for cassava starch has increased to R$629.86 per ton, reflecting a 2% rise from the previous period and a 6.3% increase over the past year, adjusted for inflation.

Recent rainfall has not been sufficient to significantly resume cassava sales. According to Cepea researchers, in addition to the lower-than-expected rainfall, most producers continue to prioritize planting, whether of roots or other crops, especially soybeans and peanuts. In addition, many continue to postpone deliveries due to lower profitability, mainly affected by low productivity and starch content. The limited supply combined with still-strong demand resulted in price increases for the 19th consecutive week, according to Cepea surveys. The nominal average forward ...