The influence of exchange rates on the agribusiness prices

Abstract

The Brazilian agribusiness has importance in Brazil, due to participation in the GDP. Considering the influence of the exchange rate in agribusiness, the present study aims to examine its importance in the prices formation over the years. According to the results, fluctuations of the soybeans and fertilizer real price were harmoniously explained by exchange rate changes, however, from 2007, was seen a misalignment between these variables. This behavior in prices is associating to the biofuel question and the heating demand of agricultural products in world order, which resulting in concerns about the impacts on inflation rates, on production costs and in the prices of basic foods in the countries.