Brazilian soybean prices appreciated significantly in March. Supported by record-breaking dollar and strong Chinese demand for Brazilian soybeans, port prices outdid the level of BRL 100 per bag, also raising domestic prices.
At Brazilian ports, a 60-kilogram bag of soybeans increased over 12% in March. In Rio Grande, prices hit a historic level by rising 12.6% and jumping from BRL 91.00 to 102.50. Similar behavior occurred in Paranaguá, where price soared by 13.3%, jumping from BRL 90.00 to 102.00.
As mentioned, the impulse to prices was mainly given by the exchange rate. Against the Brazilian currency, the dollar rose 15.95% in March and 29.5% in the quarter, ending the month at BRL 5.20, making Brazilian soybeans even more competitive. Not even the negative behavior of Chicago futures contracts contained domestic prices.
The pace of soybean shipments in Brazil remained normal in March in the midst of the coronavirus pandemic and all the consequences for the economy, with social isolation and restrictions determined by several countries.