Chicago above USD 13.00 supports soybean prices and improves business in Brazil

268
Soybean seeds in a hand after good harvest of successful farmer, combine harvester transferring freshly harvested soy to tractor-trailer, slow motion

Porto Alegre, October 24, 2023 –Soybean prices rose in the country’s main trading regions last week, which also improved the business pace. The rebound in futures contracts on the Chicago Board of Trade (CBOT) served as support for this reaction in trading. Growers divide their attention between resuming business and planting.

A 60-kg bag rose from BRL 142.00 to BRL 144.00 in Passo Fundo (RS). In the same period, prices remained at BRL 133.00 in Cascavel (PR) and BRL 125.00 in Rondonópolis (MT). In the Port of Paranaguá, they remained at BRL 143.00.

On the CBOT, contracts expiring in November closed the week at USD 13.02 per bushel, accumulating an appreciation of 1.72% over the week. The market continued the upward movement triggered after the October report from the United States Department of Agriculture (USDA), which pointed to higher-than-expected US crop and stocks.

Signs of good demand for US soybeans, both in exports and processing, and a certain concern about the irregular climate in South America, resulting in delays in planting in Brazil, completed the positive scenario. The recent rise in oil prices, due to the conflict in the Middle East, also helped the high.

The dollar fell 1.12% over the week but remained above BRL 5.00, helping to support domestic prices. Premiums remain negative, taking away some of the growers’ impetus to negotiate.

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