Soybean trading in Brazil advances at a slow pace

1171

    Porto Alegre, December 8, 2020 – The commercialization of the new Brazilian soybean crop had a modest advance again in November and the first days of December. With buyers and sellers with little interest in doing new business in the face of a large volume already committed, few negotiations were registered in the period. Growers keep their focus on the planting of the new crop, also following the climate for the development of crops and consolidation of production. Moreover, the recent fall in the dollar negatively impacted soybean futures prices in the Brazilian market last week. This fact also discouraged sellers.

     According to a survey carried out by SAFRAS & Mercado, with data collected until November 4, 98.9% of the current Brazilian soybean crop (2019/20) have already been sold, with a small advance of 0.2% from the previous month (98.7%). The current index is equivalent to nearly 123.9 million tons already negotiated, from an estimated output of 125.34 million tons. In the same period of the previous year, the percentage was 97.1%, while the normal five-year average for the period is 96%.

     For the new Brazilian soybean crop (2020/21), the survey points out that 56.5% have already been committed from the estimated production of 133.517 million tons, which is equivalent to around 75.4 million tons. There was a small increase of 1.5% over the number of October (55.1%). In the same period last year, only 37.8% had been sold. The five-year average for the period is 34.5%.

Copyright 2020 – SAFRAS Latam