The resignation of two ministers only three weeks into the life of Brazil’s new government under acting President Michel Temer was an inauspicious start for the new administration. Both resigned after charges of opposing corruption investigations in connection with the state-owned oil company Petrobras.
The dollar immediately strengthened against the Real and at time of writing was 3.6 Reals to the Dollar. This exchange rate is still a lot stronger than the 4 Reals/Dollar seen from January to March this year which encouraged exports. From an export perspective we continue to see short supply on cattle for slaughter and no great urgency to get ahead on fulfilling orders.