[indiscernible]'s questions to AGRO3.SA leadership • Q2 2024
Question
An analyst from BTG Pactual Bank asked about land price valuation, specifically whether the multiple of grain bags per hectare would decrease or if prices simply track commodities. They also inquired about the outlook for buying versus selling farms and the company's price expectations for the remainder of the '23/'24 soybean harvest and the upcoming '24/'25 season.
Answer
Executive André Guillaumon responded that land valuation multiples are unlikely to drop unless low commodity prices persist for years. He noted that acquisition opportunities will arise as speculators leave the market. For soybean prices, he explained that while global supply is high, factors like U.S.-China relations could help Brazil. He emphasized that the key challenge is the domestic basis, not Chicago prices, and that a recovery in the basis is possible in the second semester due to lower farmer selling.