2021 YE - Brazilnut Market Update

In early 2021 we saw the lowest starting crop price in over 10 years, with the lowest point in January. We then saw a strong growing demand for Brazilnut Kernels given the low price, which then drove buyers to purchase forward intensely. This quickly led to growers increasing their prices and then rumors of a low crop yield then drove prices even higher! Mid 2021 saw exporters withdrawing from offering, and as a result of the increased prices, some exporters chose to default on their contracts. Others decided to withhold material in anticipation of even higher prices, which turned out later on to be a bad move when prices then started to decrease. We are now starting to see some growers offer 2022 crop forward as they now have an insight to their total crop yield. We are still seeing offers of 2021 crop and some processors have started to purchase material once again as prices are slowly returning to their original form.