About this chart: This is the monthly chart of the Brazilian Real. You can see the major high in 2012 at just over 0.50. More recently, the highs came in at just over 0.21 in 2022 and 2023, then plunged to 0.1518 in late 2024. The currency bounced back to 0.2041 in early May 2026, then collapsed 10% early last week, hitting a low of 0.1753. The 10% collapse in the Real took US soybean prices down hard this week. Nearby soybean futures are now down over $1.00 per bushel (8%) below the September high.
What does this mean for you: I was in Brazil in 2012 and the money was easy to understand. A rate of 0.50 meant ten US dollars would get you 20 Reals. The recent hard down in the Real is now factored into the US and global soybean market. Brazilian farmers sold aggressively last week. On Monday, they were offered about $1.00 per bushel more for their soybeans (in Reals) than the prior week.
The recent exchange rate (0.1753) means that if I go back to Brazil next week, my $10 in US cash will get me 54 to 57 Reals.