Cassava/CEPEA: Increased Supply Curbs Price Upswing

According to a report from the University of São Paulo's research center, the upward momentum in cassava prices weakened last week, primarily due to an increase in supply in some regions. Researchers from CEPEA noted that cassava producers intensified their commercialization and harvesting efforts. This was driven by the need to generate capital or to clear land in preparation for the 2026/28 crop season. The increased availability of cassava for industrial use effectively curbed the previously rising prices. The research center anticipates that in the coming weeks, producers' need for cash will continue to influence cassava supply dynamics. Concurrently, industrial demand for cassava remains robust, largely fueled by companies seeking to replenish their inventories. However, looking at the medium to long term, climate factors are once again coming into focus: the U.S. National Oceanic and Atmospheric Administration (NOAA) indicates a high probability of an El Niño event occurring, which could significantly impact future cassava production and market conditions.