Soybean trading speeds up in Brazil but remains below average

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Porto Alegre, April 6, 202 – The soybean trading pace for the 2022/23 Brazilian crop gained strength in March and the first days of April in most of the country’s producing states. Despite this, the percentage sold is still well below the one registered in the same period last year and the five-year average for the period.

As expected and commented in our previous monthly survey, the harvest progress is accelerating the sales pace as growers need to flow out the large production being reaped, given the low storage capacity in Brazil. The recent decline in domestic prices was a limiting factor for an even stronger pace of sales. In any case, the trend for the coming few weeks continues to be of a good selling pace, even if prices remain under pressure.

According to a survey carried out by SAFRAS & Mercado, with data collected up to April 6, 44.3% of Brazil’s 2022/23 soybean crop were sold, up 8.9% from the previous month (35.4%). The current percentage is equivalent to approximately 68.684 mln tons traded, out of a crop currently estimated at 155.082 mln tons. In the same period of the previous year, the percentage was 56.6%, while the five-year average for the period is 59.6%.

For the new Brazilian soybean crop (2023/24), the data are still very preliminary but already indicate a theoretical percentage sold of 4.2% of a still hypothetical crop (based on the 2022/23 crop). For the current calculation, we used the 2022/23 crop figures, as the first estimate by SAFRAS & Mercado for the new season (2023/24) will be released in July, in its traditional planting intention report.

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