Soybean sales gain strength in Brazil in April due to better prices

315

Porto Alegre, May 14, 2024 – The pace of Brazilian soybean sales improved in April, driven by the improvement in prices charged in the Brazilian domestic market, mainly due to the rise in the exchange rate and export premiums.

The commercialization of Brazil’s 2023/24 soybean crop now involves 50.7% of the projected production, according to a Safras & Mercado report, with data collected until May 6. In the previous report, with data through April 5, the number was 41.4%.

In the same period last year, trading involved 51% and the five-year average for the period is 64.8%. Taking into account a crop estimated at 151.25 mln tons, the total soybeans already traded is estimated at 76.645 mln tons.

Regarding the new crop, taking into account a hypothetical minimum crop of 151.25 mln tons, SAFRAS projects forward sales of 5.9%. In the same period last year, forward sales hit 6% and the average for the period is 14.9%.

It is important to highlight that, at this moment, we use the basis of the 2023/24 crop to estimate the commercialization of the new crop, as our first estimate of Brazilian production for the 2024/25 season will be released in mid-July, as traditionally occurs.

Copyright 2024 – Grupo CMA