Soybean prices are mixed, but business loses momentum in Brazil

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Porto Alegre, October 31, 2023 – Soybean prices were mixed this week in the Brazilian soybean market, following fluctuations in futures contracts on the Chicago Board of Trade (CBOT) and the fall of the dollar against the real. As a consequence, marketing lost pace, with agents becoming more cautious and growers focusing on the delayed planting of the new crop.

A 60-kg bag remained at BRL 154.00 at the close of business on Friday (27), in Passo Fundo (RS), despite falling for most of the week. In Cascavel (PR), prices increased from BRL 133.00 to BRL 133.50. In Rondonópolis (MT), they fell from BRL 125.00 to BRL 124.00.

In the Port of Paranaguá, a 60-kg bag went from BRL 143.00 to BRL 143.50 in the period. Despite the expected improvement in the demand from China, activity at ports remained limited. The highlight is the recovery of premiums, a reflection of the lower domestic supply resulting from the retention by growers in the physical market.

On the CBOT, contracts maturing in December had a small devaluation of 0.38% during the week. The fundamental scenario, faced with a huge South American crop, and the aversion to financial risk created a pressure scenario.

The dollar spent most of the week below BRL 5.00 but closed Friday at BRL 5.01. The weekly decline was 0.38%. The arrival of external resources into Brazil weighed and determined the currency adjustment.

Despite recent losses, the moment is favorable for commercialization. Growers should take advantage of Chicago above USD 13.00 and possible dollar rebounds to negotiate, as the trend is downward.

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