Porto Alegre, February 27, 2024 – The Brazilian soybean market had a week of weak movement and prices under pressure. The sharp drop in futures contracts in Chicago and the stability of the dollar against the real weighed on prices, keeping buyers and sellers away. Most trades at the moment continue with unsettled prices, which is a more risky way for growers to try to get better bids by betting on some change in macro trends, which could bring some relief in Chicago.
Yet, many growers are beginning to accept the current unfavorable margins, be it for cash flow needs or logistical reasons (grain storage).
A 60-kg bag fell from BRL 117.00 to BRL 114.00 in Passo Fundo (RS) between February 16 and 23 (last Friday). In the same period, prices changed from BRL 110.00 to BRL 108.00 in Cascavel (PR). In Rondonópolis (MT), they rose from BRL 102.00 to BRL 104.00 due to buyers’ needs.
At the port of Paranaguá, prices dropped from BRL 119.00 to BRL 116.00. Export premiums are pressured by the harvest progress, thus increasing supply. However, Chinese buyers are expected to return, limiting the fall.
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