Commodities

by Picopeak
(Brazil)

Original Text:

Commodities prices rise above 35% in Brazil in 2010, according to a new Central Bank index.
01/05/2011 12:20 - Brazil Portal
Brazil has created a new index to measure the change of commodities internationally priced in the country (commodities). The index was launched in CB's Inflation Report of December. On Wednesday (5), the Central Bank reported that the CI-Br recorded an increase of 35.37% in 2010, compared to the previous year.
In December; compared with November, the increase was 5.79%. The comparison is possible using databases indexes available from economic research institutions. The IC-Br will identify the share of changes in commodity prices in the international markets, an item that is relevant for the dynamics of the home inflation and that should be used by the Central Bank to mark the decisions of the Monetary Policy Council (Copom).
As stated by the CB in December, now with this data it has become possible to calculate the IPCA inflation by excluding the effects of a total or partial change in the CI-Br. On Friday (7), the Brazilian Institute of Geography and Statistics (IBGE) will release the results of the Consumer Price Index (IPCA) closed in 2010, which is one of the indicators taken into account by the Monetary Policy Committee to decide on the basic interest rate of the economy. (Selic).
Copom will decide on the Selic rate already in the first meeting of the year in January. The subject may also be on the agenda of the ministers' meeting with President Rousseff to be held on Friday, next week (14).

Make-up of the new index and increases
The IC-Br gathers indicators from Agriculture, Energy and Metal sectors. In the e CI-Br Agricultural make-up, beef, cotton, soybean, wheat, sugar, maize, coffee and pork are included. CI-Br Metal includes aluminum, iron ore, copper, tin, zinc, lead and nickel. For the CI-Br Energy, prices are accounted for Brent oil, natural gas and coal.
The increase in the period was influenced by the agricultural sector, encompassing beef, cotton, soybean, wheat, sugar, maize, coffee and pork. In this segment, the increase was 6.75%.
In the segment of metals (aluminum, iron ore, copper, tin, zinc, lead and nickel), last month increase compared to that of November was 2.84%. In the case of energy (oil, natural gas and coal), the increase was 6.65%.
In last year accrual; the index increase was also pushed by agribusiness, an increase of 45.74%, followed by metals (25.85%) and energy (17.06%).
IC-Br increase surpassed that of the CBR (Commodity Research Bureau) index, which measures the commodities performance in international markets. This index increased 1.61% in December compared with November 2010. Throughout last year, the increase in international index was 17.22%.

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Revised Text:

Commodities prices rose more than 35% in Brazil in 2010, according to a new Central Bank index.
01/05/2011 12:20 - Brazil Portal

Brazil has created a new index to measure the change in commodities internationally priced in the country. The index was launched in CB's Inflation Report of December. On Wednesday (5), the Central Bank reported that the CI-Br recorded an increase of 35.37% in 2010, when compared to the previous year.

In December, compared with November, the increase was 5.79%. The comparison is possible using database indexes available from economic research institutions. The IC-Br will identify the share of changes in commodity prices in the international markets, an item that is relevant to the dynamics of the home inflation, and that should be used by the Central Bank to influence the decisions of the Monetary Policy Council (Copom).

As stated by the CB in December, now with this data it has become possible to calculate the IPCA inflation by excluding the effects of a total or partial change in the CI-Br. On Friday (7), the Brazilian Institute of Geography and Statistics (IBGE) will release the results of the Consumer Price Index (IPCA) for 2010, which is one of the indicators taken into account by the Monetary Policy Committee to decide on the basic interest rate of the economy (Selic).

Copom will decide on the Selic rate in the first meeting of the year, in January. The subject may also be on the agenda of the ministers' meeting with President Rousseff, to be held on Friday of next week (14).

Make-up of the new index and increases:

The IC-Br gathers indicators from the Agriculture, Energy and Metals sectors. In the CI-Br Agricultural make-up; beef, cotton, soybean, wheat, sugar, maize, coffee and pork are included. CI-Br Metals include; aluminum, iron ore, copper, tin, zinc, lead and nickel. For the CI-Br Energy, prices are accounted for; Brent oil, natural gas and coal.

The increase in the period was influenced by the agricultural sector, encompassing; beef, cotton, soybean, wheat, sugar, maize, coffee and pork. In this segment, the increase was 6.75%.

In the segment of metals (aluminum, iron ore, copper, tin, zinc, lead and nickel), last month's increase, compared to that of November, was 2.84%. In the case of energy (oil, natural gas and coal), the increase was 6.65%.

In last year's accrual, the index increase was also pushed by agribusiness, an increase of 45.74%, followed by metals (25.85%) and energy (17.06%).

The IC-Br increase surpassed that of the CBR (Commodity Research Bureau) index, which measures commodities performance in international markets. This index increased 1.61% in December, compared with November 2010. Throughout last year, the increase in the international index was 17.22%.

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