Credit Crunch tempers Brazilian Planting

Brazilian planting intentions hit as credit lines dry up.

Crop forecasts have been lowered from 63.8 million tonnes down to 61.7 million as growers struggle to find the credit lines to allow them to plant. Brazilian growers, having struggled with increasing costs and a less competitive export price (due to strength of the Brazilian Real versus the US Dollar) have found themselves in a very different environment. The large agribusiness corporatations ADM, Bunge & Cargil (ABC’s) have tightened their access to credit lines for growers wishing to purchase fertilizers, seeds and pesticides.  The Brazilian banks are feeling the global pinch and have also withdrawn credit lines. Commodity prices have fallen, tied to the oil price and subsequently cropping is not looking as profitable in the short term as it was.

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