Porto Alegre, August 23, 2021 – Soybean prices had a negative week in another period of isolated business in the Brazilian market. Despite the sharp decline registered in Chicago, the appreciation of the dollar against the real prevented major negative corrections in prices, which spent most of the week at levels higher than in the previous one. Only on Friday (20) did prices end the session at lower levels. The growers’ retraction and heated demand contributed to the firmness of internal prices.
In Passo Fundo (RS), a 60-kilogram bag slid from BRL 170.00 to 169.00. In Cascavel (PR), prices dropped from BRL 168.50 to 167.00; in Rondonópolis (MT), from BRL 175.00 to 174.00; and at the port of Paranaguá, from BRL 173.00 to 171.50.
Last week, price support came from the exchange rate and the resistance of growers, who emptied supply. The dollar rose 2.65%, closing the week at BRL 5.385. Concerns about the recovery of the world economy, due to the advance of the coronavirus Delta variant, and the political and fiscal uncertainties determined the rise of the US currency.
Futures contracts maturing in November plummeted by 5.44% in the same period on the CBOT. The November/21 position ended the week at USD 12.9075 per bushel. The prospect of better average yields in the US crops, brought by Pro Farmer, allied to doubts related to biofuels in the United States, set the negative tone on the fundamental side for Chicago.
The international market also felt the pressure of doubts about the world economy. Investors shed positions with commodities and looked for safer investments. The soybean complex also felt this pressure.
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