Internal prices rise in physical Brazilian soybean market

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     Porto Alegre, June 7, 2022 – Internal physical prices have accumulated nominal gains in early June, despite last Friday’s low. The market finds support in the CME volatility and the dollar recovery. With the harvest practically finished, the market looks even more like the off-season, with growers slowing down their positions with an eye on the advance of the US crop and betting on the internal firmness of the second semester due to low availability. And this helps keep prices firm.

     In Rondonópolis, the price of soybeans is currently at BRL 177 a bag in the physical market. The price remains below the BRL 185 reached on May 27, but above BRL 170 on May 31. And with that, the market signaled some slowdown of the bullish trajectory. In real terms, the price of soybeans in Rondonópolis starts to gain value again in early June. The purchasing power of a soybean bag, in values ​​updated by the IGP-M, not only exceeds the same period last year but also goes against the seasonal trend for the last 5 years and rises despite the harvest pressure. The Brazilian crop failure, with gains in Chicago, and the growers’ shorter stance explain this behavior of the real soybean price curve. Thus, the market remains within a very favorable region for sellers.

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