Brazil: Soybean prices fall again in domestic market amid excess supply

Soybean prices continue on their downward path in the Brazilian market. Even with futures contracts registering some laterality in Chicago and despite consistent dollar gains, the advance of the harvest keeps availability high, weighing on export premiums and the physical market prices as well.

Between April 13 and 20, a 60-kilogram bag fell from BRL 144.00 to 140.50 in Passo Fundo (RS). In Cascavel (PR), prices dropped from BRL 133.00 to 131.00, while they dropped from BRL 127.00 to 123.00 in Rondonópolis (MT).

In the Port of Paranaguá, a 60-kilogram bag dropped from BRL 143.00 to 142.00. FOB prices are the lowest since the end of November. The wide supply, which derives from the entrance to the largest production in our history, knocks down premiums, which are around -200 points against Chicago.

On the Chicago Board of Trade (CBOT), the May contracts fell by 0.19% until the end of the session on Thursday (20), hitting BRL 14.97 a bushel. The market started last week in recovery with signs of demand but lost ground with the scenario of risk aversion in the global financial sector and the favorable climate for the planting and development of US crops.

The dollar rose around 2.91% against the real, recovering from recent losses. The US currency returned to BRL 5.06, with doubts about the government’s fiscal framework, finally handed over to Congress, and also feeling the negative impact of the external behavior.

Tags: Brazil, prices, soybean, Production, Market, premiums, export