Porto Alegre, 3 April, 2023 – The month of March reserved a negative scenario for soybean prices in the Brazilian market. As a result, trading remained at a slow pace, with growers taking advantage of bullish opportunities to sell soybeans. There is no prospect for improvement in the short term.
A 60-kilogram bag fell from BRL 167.00 to 150.00 in March in Passo Fundo (RS). In the period, prices dropped from BRL 164.00 to 144.00 in Cascavel (PR). In Rondonópolis (MT), they fell from BRL 151.00 to 138.00.
In the port of Paranaguá, the bag also suffered a sharp decline, falling from BRL 170.00 to 156.00. Premiums remained negative for the month and accentuated losses for most of the month.
The main pressuring factor on prices and premiums was the advance of the harvest of the biggest crop in the history of Brazil. Despite problems in Rio Grande do Sul, due to the drought, Brazilian production is estimated by SAFRAS & Mercado at 152.4 mln tons.
Supply increased consistently. There was a serious problem with the crop in Argentina, which had already been absorbed by the Chicago Board of Trade (CBOT). Futures contracts ended the month with an appreciation of 1.79%, but that only occurred on the last day of the month after the US area data. For most of the month, contracts operated in negative territory.
Abroad, in addition to the greater supply from Brazil, the market was hampered by the weak demand for US soybeans and by the climate of risk aversion in the financial sector, in view of concern over the global banking system. Completing the negative scenario for Brazilian soybeans, the dollar closed the month 2.97% lower, pegged at BRL 5.069.
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