CBOT gains send Brazilian soybean prices higher again; growers begin to seize opportunities

414

Porto Alegre, June 27, 2023 – Soybean prices regained momentum last week in the Brazilian market, and business pace improved again in the country’s main trading regions. Although internal prices closed mixed Friday, they appreciated for most of the week, which attracted sellers. Growers are taking advantage of the hikes in CBOT futures contracts to speed up sales, which despite this remain well behind the average for this time of year.

The 60-kilogram bag remained at BRL 135.00 in Passo Fundo (RS). In Cascavel (PR), prices went from BRL 124.00 to 125.00. In Rondonópolis (MT), they dropped from BRL 117.00 to 113.00. In the port of Paranaguá, the bag remained at BRL 136.00.

On the Chicago Board of Trade, the week’s balance was positive for the spot contract and negative for new crop contracts, but the impact of the days’ highs was positive for internal prices. The July contracts gained 1.91% last week, quoted at USD 14.945 a bushel, while the November contracts fell 2.40%, quoted at USD 13.10 a bushel.

Two points keep determining prices in Chicago: the climate in the United States and the financial scenario. The first part of the week was also marked by concerns about the lack of rain, high temperatures, and worsening crop conditions in the growing belt, which ensured better prices. But since Thursday the forecast for moist weather in early July has become the trend. In addition, there is a climate of greater risk aversion, with investors looking for safer options.

Another important factor for the formation of domestic prices, the exchange rate, remains unfavorable. The US currency lost value against the real again last week, closing Friday at BRL 4.777, down 0.93% from the previous Friday.

Follow the Safras Agency on our website. Also follow us on our Instagram and Twitter and stay on top of the main agribusiness news!

Copyright 2023 – Grupo CMA