Management Report 2020

Management Report 2020 SLC Agrícola Cotton Figure 5 US Cents/Lb 90 85 80 75 70 65 60 55 Cotton prices in the international market and in Brazil 50 45 40 Jan-19 Apr-19 Jul-19 Oct-19 Jan -20 Apr-20 Jul-20 Oct-20 Jan-21 Cotton ICE Cotton ESALQ Source: Bloomberg The year 2020 was marked by high volatility in cot- ton prices in the international and Brazilian mar- kets. In a year marked by the pandemic, assets were affected at the global level due to the uncer- tainty inherent to the markets and to the risk- averse posture adopted by agents in the chain, which helped to push prices to near their recent historical lows. The events that had a significant impact on agri- cultural markets also collaborated to the scenario of recovery and higher commodity prices world- wide. The signing of Phase One of the trade deal between the United States and China, in which the Asian country committed to buying agricultural products from the United States on a large scale, as well as the monetary policies adopted and con- sequent reduction in interest rates, were key measures supporting the scenario of recovery and higher prices. 20 20

View entire presentation