Chicago gains strength and boosts Brazilian soybean prices

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     Porto Alegre, April 26 2021 – Soybean prices rose in the Brazilian market last week, following the strong appreciation of futures contracts on the Chicago Board of Trade (CBOT). The pace of business remained moderate, limited by the fall of the dollar and the decline in export premiums.

     A 60-kg bag ended last Friday (23) at BRL 183.00 at the Port of Paranaguá. On Monday (19), the price was BRL 177.50. In Passo Fundo (RS), the price rose from BRL 170.00 to BRL 179.00 for a 60-kg bag.

     The domestic increase was guaranteed by the sharp high in Chicago. The May contract jumped 7.43% over the week, reaching USD 15.39 at the close on Friday, the best level in more than seven years. Domestic prices only did not rise further due to the 1.54% fall in the dollar and the decline in premiums.

     Chicago’s good performance is linked to the weather market in the United States. The planting started with low temperatures, which raised concerns about the initial crop development. Funds and speculators adopted an offensive stance, also supported by the fundamental scenario, which combines good demand with tightening stocks.

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