In November, the Brazilian Central Bank dropped the reference interest rate 0.5% to 5%. A new report from Bradesco, the second largest private bank in Brazil, suggests interest rates could fall again to 4.5% in December or January.

For some major players, the transition from a subsidized market to a non-subsidized one will be difficult. “It is always hard to leave a situation of comfort for an unknown one. This generates apprehension, mostly [for] farmers…