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S Illinois | Brazil doesn't manipulate their currency anymore than any other free spending, low productivity, high corruption based county/gov. They are not a get rich quick country off the backs of the world type country by devaluing their currency. They just happen to be a country with a touch bigger land area than the continental US and with a much higher % of that land not in mountains and deserts when compared to the US. So they are a corrupt resource rich country with high inflation that exports many of its goods. Aka Russia. I realize many want to go back to mercantilism where currency accumulation is the goal and trade deficits are seen as "losing" but it makes a country poorer economically not richer. So in the end the Real depreciates because everyone else in the world would rather hold dollars than Real.
As to the OP, basis and what producers are willing to sell their grain at determines price and price advantage. Everyone wants to point to regulation or seed cost. Its not direct production costs that make them more competitive https://farmdocdaily.illinois.edu/2023/11/comparing-direct-costs-of-...
It's the big budget items and how efficiently they are used. Imagine if your land payment or rent cost was cut in half, how much of a lower selling price would make you profitable. Also imagine you were able to run 50% more acres with similar equipment you currently have just due to field size efficiency and weather. Farming in Brazil is sort of difficult as the infrastructure and labor situation is terrible when compared to the US.
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Brazilian Soybean price…how is it determined?
