The climate is a variable that reigns in agribusiness. At the beginning of the year, the sector has accounted for billions of losses in crops in the Center South of Brazil in the face of drought. However, the game can turn and three actions can win big, according to the Agora Investments.
“We are not climate experts. But a forecast from the United States as of today suggests that the intense drought that has been affecting Brazilian crops, and leading to higher soybean prices, may lose strength in the coming months”, comment analysts Leandro Fontanesi and Ricardo França.
Conditions should be neutral or normal from May onwards, when weather risks to crops are expected to decrease further.
Despite short-term weather risks, the broker maintains the base case that agricultural prices will fall by 20% in 2022. Negative weather headlines could gradually give way to bearish factors in agri market prices, he says.
chinese chopping grain demand in 2022, US interest rates start to rise from March and lower price forecasts oil this year and the next are the vectors that indicate the fall of agricultural commodities, according to analysts.
See the three below actions that the market has not yet priced in and that they can gain from the fall in prices of grains, second to Agora:
|Business||Code||Recommendation||Target price (R$)||Potential (%)*|
|M. Dias Branco||MDIA3||Purchase||40||72|
|*12-month upside potential based on closing values on 1/13/2022|
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Source From: Moneytimes