Porto Alegre, June 18th, 2024 – The pace of Brazilian soybean sales registered a strong acceleration in May and the first days of June. The high in domestic prices, which found support in Chicago, premiums and mainly in the dollar, did encourage producers to return to the market, resulting in a strong increase in the percentage sold across the country. Yet, the percentage remains lower than the five-year average for the period, even though a large part of the accumulated delays has been recovered.
The commercialization of Brazil’s 2023/24 soybean crop now involves 64.6% of the projected production, according to a Safras & Mercado report, with data collected through June 10. In the previous report, with data collected until May 6, the number was 50.7%.
In the same period last year, trading involved 56.7%, and the five-year average for the period is 70.1%. Taking into account the output estimated at 149.705 mln tons, the total soybeans already traded is estimated at 96.738 mln tons.
Regarding the new season, taking into account a hypothetical minimum crop of 149.705 mln tons, SAFRAS projects forward sales of 9.9%. In the previous report, until May 6, the percentage was 5.9%. In the same period last year, sales in advance were at 8.1%, and the average for the period is 17.6%.
It is important to highlight that, at this moment, we still use the basis of the 2023/24 crop to estimate the commercialization of the new crop, as our first estimate for the Brazilian production in the 2024/25 season will be released on July 12.
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