Brazilian soybean market presented few deals and lower prices

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     Porto Alegre, May 30, 2022 – The Brazilian soybean market presented few deals and lower prices in the main regions of the country last week. Despite the recovery of futures contracts on the Chicago Board of Trade, the market was pressured by the retreat of the dollar against the real, driving traders away.

     The 60-kilogram bag dropped from BRL 194.50 to 192.50 in Passo Fundo (RS) compared to the closing of the previous Friday. In Cascavel (PR), prices fell from BRL 189.00 to 187.00; in Rondonópolis (MT), from BRL 178.00 to 174.00; and at the Port of Paranaguá, from BRL 195.50 to 195.00.

     On the CBOT, the week was positive, which prevented another negative adjustment in domestic prices. The contracts maturing in July accumulated an appreciation of 1.58% in the period, ending Friday, the 27th, at USD 17.32 per bushel. The market found support from firm demand, amid tight stocks, lower financial risk aversion, and the forecast for rains in the north of the US growing belt, which could delay the planting in the region.

     The dollar, however, had a devaluation of 2.71%, reaching the mark of BRL 4.739. The US currency followed the international flow. With the worsening of the US economy, investors tend to migrate to emerging countries. The flow of fundings in Brazil continues to accelerate, strengthening the real against the dollar.

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