Favorable US weather sends soybean prices lower in Chicago in July; Brazil prices also fall

Brazil soybean prices fell in July in most of Brazil’s main trading regions. Business evolved, albeit moderately, with producers taking advantage of some rebounds, mainly caused by the exchange rate.

The pressure on Brazil prices was exerted by the fall in futures contracts on the Chicago Board of Trade (CBOT), caused by the favorable weather for crop development in the United States, which continues to guarantee full production. At the end of July, the spot position was quoted at USD 10.28 per bushel, with a strong monthly devaluation of 10.6%.

The 60-kilogram bag fell from BRL 138.00 to BRL 132.00 in the period, in Passo Fundo (RS); in Cascavel (PR), from BRL 134.50 to BRL 129.00; in Rondonópolis (MT), from BRL 128.00 to BRL 127.00; and in the port of Paranaguá (PR), from BRL 144.00 to BRL 138.00.

The decline in Brazilian prices was not as intense due to the exchange rate. In July, the US currency rose 1.13%, closing the month at BRL 5.65. In the first days of August, it rose even further, surpassing the BRL 5.73 barrier and reaching its highest level since December 2021.

Tags: United States, soybeans, Production, crop, Brazil, prices