October sees price highs in the Brazilian physical market of soybean; Dollar and premiums prompt support

October was a positive month for soybean prices in the Brazilian physical market. The strength of the dollar against the real was one of the main supports for the oilseed. The US currency closed the month near BRL 5.80. In addition, export premiums appreciated again due to a lower availability of soybeans for the last weeks of 2024.

In the last week of October, several sales were announced by private exporters in the United States, which brought some appreciation to futures contracts in Chicago. The country’s weekly exports released last Thursday (31) were also consistent. The accumulated total for the month, however, showed a loss of 7.05% for the November/24 position of soybeans in Chicago, reflecting the start of a full crop in the US and improved weather in South America.

A highlight was the strong appreciation of prices in the state of Mato Grosso due to the low supply of soybeans in the physical market, reflecting the production losses registered this season. In Rondonópolis, the bag closed the month of October quoted at BRL 150.00, compared to BRL 133.00 a month ago. These prices, in fact, exceed the export parity prices at the moment, a rare occurrence, but one that can occur in the last months of the year in an environment of production losses.

At the port of Rio Grande (CIF), the 60-kilogram bag was bidded at BRL 145.00 on October 31. A month ago, it was at BRL 142.00. In Paranaguá (CIF), the bag was bidded at BRL 145.00 on the 31st, compared to BRL 143 a month ago.

For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.

It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.

You are welcome to get a 7-day free demo access!!!

Tags: exports, Brazil, prices, United States, soybeans, Production, Market