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Bottlenecks in the textile industry
Like several other sectors of the Brazilian industry, textile production is still affected by the effects of bottlenecks in the supply chain that emerged during the pandemic.
Understand: in addition to increasing costs, obstacles have delayed deliveries from suppliers and even made it difficult to buy dyes. With less storage and trading capacity, the small companies in the sector end up suffering more.
What explains: The sheet has already shown how the cost and the queue for ocean freight have complicated the lives of various segments of the industry.
In addition, Chinese rules for products considered polluting also specifically affect the textile sector by forcing factory production to stop.
In numbers: the price of cotton is another pressure factor. On February 11, the pound feather was BRL 7.02 in negotiations with a period of eight days for payment. A year earlier, it cost R$4.74, and in 2020, BRL 2.85.
The rise in cotton caused the cost of spinning to rise from 50% of the cost, on average, to around 70%.
Drought pressures soybean prices
With the drought threatening the plantations, the consultancies began to reduce the estimates of soy production, which helps to pressure the oilseed prices, shows the column Vaivém das Commodities.
In numbers: after the initial forecast 145 million tons for the 2021/2022 crop, some projections already consider a production of 122 million tons for the period.
The drought also affects other South American countries, and estimates for the Argentine and Paraguayan crops were also reduced.
why it matters: in addition to playing an important role in Brazilian exports, soy is also used in animal feed, being an important factor in meat prices. Oilseed derivatives, such as cooking oil, should also become more expensive.
More about agro:
Livestock farming experienced a scenario of contradiction in 2021. While the sector had the lowest number of cattle slaughtered in the last 17 years, it recorded a record in productivity per animal.
Commodities and Ukrainian crisis bring down the stock market
The Brazilian stock exchange interrupted its sequence of seven consecutive highs this Thursday (17th) and retreated 1.43%, at 113,528 points, affected by foreign news. the dollar rose 0.72%at R$ 5.17.
What explains:
Iron ore: after strong appreciation in January, one of the most important commodities for the country has retreated in February. Chinese authorities are putting pressure on local negotiators to release some of their stockpiles and avoid “speculation”.
- Largest Brazilian mining company and second most valuable company on the Stock Exchange, Vale saw its shares fall 4% this Thursday.
Crisis in Ukraine: Tensions escalated again in Eastern Europe. The market’s attention was drawn to the expulsion by Russia of number 2 from the US embassy in Moscow.
- The increase in instability generated losses in stock markets around the world. On Wall Street, the Dow Jones, S&P 500 and Nasdaq were all down 1.78%, 2.12% and 2.88%, respectively.
And the oil? Due to the high Russian production capacity, commodity prices tend to rise when tensions rise in Eastern Europe.
On Thursday, however, prices fell as negotiations on Iran’s nuclear program advanced, which could put the country back as a global supplier of oil.
More about the Scholarship:
take a break
The couple arrested last week accused of trying to launder more than $3.6 billion in stolen bitcoins were the protagonists of the biggest financial bust in American history. Film history? Netflix believes so.
Understand the case: what is being called the “heist of the century” happened in 2016, when hackers stole 120,000 bitcoins from the Bitfinex platform. Authorities did not say whether the arrested couple were directly involved in the hacking of the system.
- The reasons for the arrests of Ilya Lichtenstein, 34, and Heather Morgan, 31, were embezzling parts of the stolen currency and trying to hide them in a complex network of digital wallets.
- Learn here how authorities tracked the couple’s movements, which could face up to 25 years in jail.
- Their lawyer said in court documents that he believes the government’s case is weak and based on “conclusive and unsupported leaps.”
Go to Netflix: The magnitude and complexity of the case caught the attention of the streaming giant, which announced that it will invest in a production of a series about the duo.
While it does not reach the screens, we separate other cases of financial crimes that shook the market and that are available in the streaming catalogs:
- “The Wizard of Lies”: Robert de Niro plays Bernie Madoff, creator of the biggest financial pyramid in history – the Ponzi Scheme. The former tycoon died in 2021, aged 82, in a US federal prison, where he was serving a 150-year sentence. On HBO Max.
- “On the Dirty Money Route”: Netflix documentary series addresses several financial scandals in two seasons.
In addition to the economy:
- My Vacancy, My Rules: What will post-pandemic work look like and what are the jobs of the future? listen to podcast.
​ - TV Folha – “Se Tá Solteira”: how the sound of FBC burst and gave a dance on TikTok; see video.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
