Porto Alegre, September 10, 2024 – The pace of Brazilian soybean trade once again advanced little in August and the first days of September in the main growing states of the country.
Producers once again showed less interest in new sales in view of the decline registered in domestic prices in most of August. Prices fell mainly as a result of futures contracts in Chicago, which operated at their lowest levels since 2020 in view of the imminent confirmation of a full and record US crop, which should be confirmed at around 125 mln tons. In addition, the dollar also lost strength against the Brazilian currency in most of August, after reaching the highest level of the year in the first days of the month. As a supporting factor, Brazilian premiums demonstrated firmness given a still strong export pace and lower physical supply in the country for the last months of the year. This factor should continue to provide some support to domestic prices in the physical market until the last weeks of 2024.
The commercialization of the 2023/24 soybean crop in Brazil now involves 82.2% of the projected production, according to a report by Safras & Mercado, with data collected up to September 6. In the previous report, with data collected through August 9, the number was 77.5%. The current data indicate an increase of 4.7% compared to the previous month.
In the same period last year, the negotiation involved 79.8%, while the five-year average for the period is 86.4%. Taking into account an estimated crop of 151.705 mln tons, the total soybean already negotiated is estimated at 124.548 mln tons.
Regarding the new crop (2024/25), taking into account an initially estimated production of 171.542 mln tons, SAFRAS projects an early sale of 22.5%, equivalent to approximately 38.615 mln tons. In the previous report, up to August 9, the index was 18.2%. Current data indicate an increase of 4.3% over the previous month. In the same period last year, sales in advance were at 17.9%, while the five-year average for the period is 26.4%.
Safras News