Porto Alegre, October 8th, 2024 – The pace of Brazilian soybean trading has seen a recovery in September and the first days of October in the country’s main growing states.
The firmness of domestic prices for the physical crop, which found support mainly in the gains registered in CBOT futures contracts during the period as well as in premiums, encouraged producers to move forward with negotiations for larger volumes for delivery in 2024, taking advantage of a more positive environment.
As for the new season, the selling pace remained quite slow, reflecting a still negative environment for prices with future delivery in 2025.
The trading of the 2023/24 soybean crop in Brazil now involves 87.7% of the projected production, according to a report by Safras & Mercado, with data collected up to October 4. In the previous report, with data collected up to September 6, the figure was 82.2%. The current data indicate an increase of 5.5 percentage points compared to the previous month.
In the same period last year, sales involved 84.9%, while the five-year average for the period is 90.1%. Taking into account an estimated output of 152.294 mln tons, the total volume of soybeans already negotiated is estimated at 133.622 mln tons.
Regarding the new crop (2024/25), considering an initially estimated production of 171.780 mln tons, SAFRAS projects the forward trading of 24.8%, equivalent to approximately 42.575 mln tons. In the previous report, up to September 6, the rate was 22.5%. The current data indicate an increase of 2.3 percentage points over the previous month. In the same period last year, sales in advance were at 21.4%, while the five-year average for the period is 29.4%.
Safras News