Last week was full of volatility in the Brazilian soybean market


Porto Alegre, November 21, 2023 – Last week was full of volatility in the Brazilian soybean market. While futures contracts rose in Chicago, the dollar retreated against the real. Business pace was moderate, but with growers taking advantage of Chicago’s peaks at times. At the center of all the movements, the irregular climate in Brazil focuses attention.

The 60-kilogram bag rose from BRL 145.00 to BRL 147.00 in Passo Fundo (RS). In Cascavel (PR), prices dropped from BRL 134.50 to BRL 134.00. In Rondonópolis (MT), they fell from BRL 127.50 to BRL 126.00. In the Port of Paranaguá, the bag fell from BRL 144.50 to BRL 144.00. Premiums rose as traders added climate risk.

Planting is delayed in Brazil. There is too much rain in the South and not enough in the north of the growing belt. Concerns about the progress of work in Brazil supported the CBOT for much of the week, but the improvement expected for the next few days weighed on the last two sessions of the week. At the close of Friday (17), the weekly devaluation of contracts expiring in January was 0.54%, quoted at USD 13.40 per bushel.

The exchange rate, another important price formation factor, also put pressure on prices. The dollar had an accumulated decline of 0.18% at Friday’s closing, at around BRL 4.90. The improvement in the external environment helped the US currency and acted against the positive effect of Chicago.

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