Emiko Terazono and Anna Gross YESTERDAY
Latin American exporters are having their day in the sun as the fall in their currencies lifts the price of their commodities.
Copper prices in Chilean peso terms and coffee prices valued in the Brazilian real have soared to near record highs. Commodity benchmarks are often priced in US dollars, so a decline in the exchange rate means higher prices in local currency terms.
“In Brazil it’s like a party,” said Carlos Mera, senior analyst at Rabobank. “The amount of selling [among coffee farmers] has been huge and it’s going to continue to be huge
The currency moves have helped fuel commodity exports from the region. As with coffee, soyabean exports from Brazil during October and November hit a record at 10m tonnes.
Latin American currencies have been dragged down by the flatlining Argentine peso, which has lost 37 per cent of its value this year against the dollar.
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