Cassava/CEPEA: Prices Rise for Second Consecutive Week
According to CEPEA, dry weather in key Brazilian cassava-producing regions has hampered harvesting and reduced farmers' willingness to sell due to lower profitability. This limited supply, coupled with strong demand for starch and flour, has driven cassava prices up for the second consecutive week. Consumer interest in replenishing starch inventories further contributed to market activity.
The University of São Paulo research center reports that cassava prices have risen for the second consecutive week. According to CEPEA's monitoring, persistent dry weather in major cassava-producing regions of Brazil, particularly in Paraná and Mato Grosso do Sul, has hindered the harvesting of cassava roots.
Concurrently, many farmers continue to show low interest in selling their cassava due to reduced profitability, exacerbated by lower agricultural productivity. In this market scenario, CEPEA's survey indicates that limited supply and robust demand collectively drove cassava root prices higher last week, marking the second consecutive week of increases.
In the cassava starch market, the need for inventory replenishment from various consumer segments kept the market active. Furthermore, cassava flour also experienced strong buyer interest, further solidifying the upward trend in overall cassava product prices.