Porto Alegre, February 7, 2022 –Soybean prices rose sharply again in the Brazilian physical market last week, reaching unprecedented levels. Boosted by the rise in CBOT futures contracts and firm premiums, the 60-kilogram bag exceeded BRL 200.00 in the interior of Rio Grande do Sul. The pace of business remained moderate, reflecting the withdrawal of growers, despite prices.
The 60-kilogram bag surged from BRL 192.00 to 202.00 in Passo Fundo (RS) last week. In the same period, prices jumped from BRL 182.00 to 191.00 in Cascavel (PR). In Rondonópolis (MT), they increased from BRL 170.00 to 181.00.
At the Port of Paranaguá (PR), prices rose from BRL 187.00 to 196.00. Export premiums remained firm, reaching 130 to 140 above Chicago for March. Slow trading in the physical market and concerns about the size of the South American crop support premiums and prices at ports.
On the CBOT, contracts maturing in March increased by 5.68% last week, ending Friday, the 4th, at USD 15.53 per bushel. The persistent dry weather in regions of South America is making the sector revise South American production every day, and the impact of a lower global supply supports international prices, with impact on Brazil.
Signs of heated demand for US soybeans are multiplying week after week. Exports and the internal crush remain firm in the country. And this sentiment is reinforced by the prospect that buyers will have to turn to the US market amid the problems with the weather in South America.
The only limiting point to the upward trajectory of soybean prices in Brazil – albeit with a very limited impact – is the exchange rate. The dollar dropped again last week, accumulating 1.22% losses until Friday, when it closed at BRL 5.324, pressured by the inflow of foreign capital into the Brazilian market.
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