Soybean prices go up and stimulate trading in Brazil

Soybean prices rose, and turnover improved last week in the Brazilian market. The rally in Chicago futures contracts, the dollar’s high against the real, and firm premiums brought sellers back to the market. Sales involved both the current and new crops.

In the physical market, the 60-kilogram bag rose from BRL 171.00 to 173.00 in Passo Fundo (RS). In Cascavel (PR), prices increased from BRL 171.50 to 173.00, and in Rondonópolis (MT), from BRL 170.00 to 173.50.

In the FOB market, the levels also rose, reflecting the increase in Chinese demand. Buyers shifted from the US market, still due to logistical problems caused by Hurricane Ida, to Brazil. In Paranaguá, a bag increased from BRL 175.00 to 175.50. At the port of Rio Grande, bids went up from BRL 175.50 to 177.00. Premiums remain firm for this and next year’s shipments.

On the Chicago Board of Trade, contracts maturing in November accumulated a slight devaluation of 0.19% at the end of the week, ending Friday at USD 12.84 per bushel. Despite the slight loss, over the week the contracts operated in positive territory. Signs of demand still support prices, but the market loses strength with the approach of the harvest of a full crop in the United States.

The dollar remained firm throughout the week at around BRL 5.27. For the week, the currency accumulated a high of 0.42%, quoted at BRL 5.289, after the announcement of an increase in IOF by the federal government.

Safras & Mercado

Tags: Brazil, prices, soybean, trading