Sharply lower in soyben prices slow down trading pace in Brazil in April

The Brazilian trading pace of the 2022/23 soybean crop lost some momentum in April and the first days of May compared to the evolution registered in March. Despite this, it is noted the need for growers to keep selling the physical crop out of necessity, as prices continued on a downward trend during the period. This necessity derives mainly from short-term financial obligations that most growers have, besides a low storage capacity across the country. Moreover, growers are also starting to prepare for the purchase of inputs for the next crop, which also increases the need for capital at this time, although bartering remains a very advantageous option and should be taken advantage of.
Owing to the sharp decline in prices registered in April, the pace of sales was unable to advance at a stronger pace, registering a smaller percentage increase compared to the previous month.
According to a survey carried out by SAFRAS & Mercado, with data collected up to May 5, 51.0% of Brazil’s 2022/23 soybean crop were sold, up 6.7% from the previous month (44.3%). The current percentage is equivalent to approximately 79.139 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 61.0%, while the five-year average for the period is 67.1%.
For the new Brazilian soybean crop (2023/24), the data remain very preliminary, but already indicate a theoretical percentage sold of 6.0% of a still hypothetical production (based on the 2022/23 crop). In the same period last year, the percentage was 12.0%. The five-year average for the period is 17.1%. For the current calculation, we used the numbers of the 2022/23 crop, as the first estimate by SAFRAS & Mercado for the new crop (2023/24) will only be released in July, in its traditional planting intention report.
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