The toughest crisis of confidence in Brazil's economy two decades forces the credit loaded grain, sugar and coffee producers in the country to scale back their investments. That prevents Brazilian farmers using the rising global commodity prices.
Banks, which are affected by a wave of loan defaults due to the most severe recession since eight years, are wary of new lending to agriculture which are available for years on a large scale in the Cretaceous. Financial advisers fear that Brazilian agriculture playful growth two years now.
The acreage for grain including corn and soybeans has increased only by 0.3%. In previous years, annual growth rates of 3% were reached in 2015 and 5% in 2014. Since 2011 and 2013, the Brazil's soybean production drops now for the first time although the exports recorded new records last year due to the strong US dollar. Now, analysts expect that the maize exports due to strong domestic demand is no longer rise before 2017.
Meanwhile, the prices of coffee and corn have risen to the highest level since 2015, sugar prices are at the highest level for three years, soybean prices are on a two-year high. For these four agricultural commodities, Brazil is among the world's top exporters. But, all four have suffered large yield losses due to unfavourable weather in recent months, causing, that farmers need more loans.
If banks can offer no or less credits to farmers, so international trading houses with advances on the next harvest step now more often.
