Porto Alegre, June 7, 2022 – The pace of soybean sales for the 2021/22 and 2022/23 crops resumed regular growth in the country in May. With growers away from the market, few deals were registered during the month. Even so, May had some moments in which price gains brought growers back to the market.
What still raises alarm is the weakness of business with the new crop, where the low interest on the part of sellers is still intrinsically linked to the low availability of input companies to make negotiations under a barter system, as there are still many uncertainties with the delivery of the necessary inputs for the coming few months.
According to a survey carried out by SAFRAS & Mercado, with data collected up to June 2, 65.9% of Brazil’s 2021/22 soybean crop were sold, an increase of 4.91% compared to the percentage of the previous month (61%). The current percentage is equivalent to approximately 80.609 million tons traded from an estimated crop of 122.301 million tons. In the same period of the previous year, the index was 75.6%, while the five-year average for the period is 71.5%. For the new Brazilian soybean crop (2022/23), the percentage sold reaches 13.3% of a still hypothetical crop, with an increase of 1.3% over the previous month (12%).
For calculation, SAFRAS used the productive potential of the 2021/22 crop in November, before the weather problems that brought production down. The percentage is equivalent to approximately 19.214 million tons of a hypothetical crop of 144.712 million tons.
The first estimate by SAFRAS & Mercado for the new Brazilian soybean crop (2022/23) traditionally takes place in the month of July. Until then, this hypothetical production potential will be used for calculation.
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