Despite exchange rate, Brazilian soybean market halts on Chicago’s lows

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     Porto Alegre, June 20, 2022 – The Brazilian soybean market had a week of scarce business and regional prices, with losses prevailing in most regions. The prices were practically nominal amid the lack of interest from traders.

     The decline in futures prices on the Chicago Board of Trade (CBOT) determined the weak trading over the week, aggravated by the Thursday holiday. The rise of the dollar against the real eased the pressure on domestic prices.

     The 60-kilogram bag dropped from BRL 204.00 to 202.00 in the period in Passo Fundo (RS). In Cascavel (PR), prices decreased from BRL 199.00 to 197.00. In Mato Grosso, in Rondonópolis, they fell from BRL 180.50 to 177.50.

     At the Port of Paranaguá (PR), the bag slid from BRL 201.50 to 201.00. Export premiums rallied in the second half of the week, reflecting the perception of a shift in Chinese demand from the United States to Brazil.

     On the CBOT, contracts maturing in July accumulated a 2.49% devaluation. The week had technical correction after recent gains. The climate of risk aversion in the international financial market contributed to the lows.

     The exchange rate mitigated Chicago’s negative impact on domestic prices. With fiscal risks in Brazil and concerns about global inflation, the dollar rose by 3.15%, closing Friday at BRL 5.1460.

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