Porto Alegre, March 2, 2022 – Russia’s attack on Ukraine shook world markets and brought great volatility to soybeans throughout the week in Chicago. The May/22 position changed hands at USD 17.60 a bushel, reaching the highest level in 9 years. But Friday (25) marked a change in flow, with funds quitting commodities and taking profits, which made the May/22 position retreat below USD 16.00 a bushel, closing the week 1.2% lower. The rain forecast for South America collaborated with the sharp lows on the CME.
FOB premiums practiced at Brazilian ports remain firm. The drop in production along with the slow selling pace by growers justify this behavior.
The dollar had a strong appreciation last week, reflecting the changes in global markets in the face of the crisis in Eastern Europe. The fact is that the dollar began the week at BRL 5.00 and closed it at BRL 5.16, accumulating a rise of more than 3%.
As a result, the physical price of soybeans is supported by the volatility of Chicago and the recovery of the dollar. The idea for physical soybeans in Rondonópolis is BRL 182 per bag, an accumulated gain of 12% this year.
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