May 28, 2009
Brazil government warns dollar below BRL2 may hinder agriculture exports
Brazil's Minister of Agriculture on Wednesday (May 27) said that one dollar dropping below a level of 2 Brazilian reals would cause difficulties for Brazil's agricultural exporters, local news service Estado reported.
"Below the BRL2 level [for one dollar], we'll only be compensated by the price," Estado quoted Reinhold Stephanes as saying in Brasilia.
One dollar hovered just above this mark at 2.015 Brazilian real on Wednesday.
Stephanes said that in the case of soy, the higher prices on the Chicago Board of Trade, or CBOT, helped to compensate for the unfavourable foreign exchange.
Stephanes added that when the dollar falls, the price of soy tends to rise, Estado reported.
Brazil is the world's No. 1 producer of coffee, sugar and orange juice and the No. 2 producer of soy.
