Brazilian soybean prices recover with highs in Chicago

Brazilian soybean trading was busier last week. The surge in futures contracts on the Chicago Board of Trade (CBOT) at least supported internal levels and ensured a better business pace. Internal prices only failed to rise more because the dollar reached the year’s low. Premiums, on the other hand, fell again because of increased supply.

In Passo Fundo (RS), a 60-kilogram bag rose from BRL 133.00 to 135.00 last week; in Cascavel (PR), from BRL 120.00 to 124.00; in Rondonópolis (MT), from BRL 116.50 to 117.00; and in the Port of Paranaguá, from BRL 132.00 to 136.00.

The week’s highlight was the behavior of future prices in Chicago. The November position accumulated an increase of 11.46% in the period, reaching USD 13.42 a bushel at the close of Friday (16). The weather market has finally presented itself. With bulletins indicating little moisture, high temperatures, and deteriorating crop conditions, funds and speculators returned with force to the buying side and boosted prices.

Another decisive factor was the behavior of the financial market. With the United States keeping interest rates unchanged, stock markets and oil – and other commodities – rose. The dollar retreated, favoring US exports.

In Brazil, the exchange rate hindered the market and prevented a greater recovery of internal prices. The US currency retreated 1.13% over the week and reached the year’s lows, quoted at BRL 4.822 at the close of Friday (16).

Tags: Chicago Board of Trade, premiums, Brazil, prices, soybean, CBOT, futures, Market