Porto Alegre, October 01th, 2024 – The Brazilian soybean market had a month of recovery in domestic prices and an improvement in sales. Domestic earnings were determined by gains in futures contracts on the Chicago Board of Trade (CBOT). The fall in the dollar limited the improvement in sales conditions.
The price of a 60-kilogram bag rose from BRL 126.00 to BRL 136.00 during the month (up to the 27th) in the region of Passo Fundo (RS). In Cascavel (PR), prices surged from BRL 129.00 to BRL 139.00. In Rondonópolis (MT), they rose from BRL 128.00 to BRL 133.00.
In the Port of Paranaguá, the price per bag also rose during the period, going from BRL 134.00 to BRL 143.00. Premiums, in general, remained firm and positive.
Futures contracts due in November, the most traded on the CBOT, increased 6.57% through the 27th, trading at USD 10.65 per bushel at the close of trading on Friday, the 27th. Weather concerns were a determining factor in the recovery, even though the outlook is still for ample global supply of the oilseed.
In the United States, crops are in the harvest phase. Specific weather problems have raised doubts about the production potential, even though all forecasts indicate a record crop in the world’s second-largest soybean grower.
In Brazil, planting began late in September. There are concerns about the dry weather in much of the producing region. In addition to delaying sowing, there are fears that yields will be compromised, even though it is still too early to assess possible losses and given optimistic forecasts about the size of production.
The exchange rate was the limiting factor for the improvement in market conditions. During the period, the US currency depreciated by 3.49%, trading at BRL 5.4361 at the close of trading last Friday. The start of the interest rate cut cycle in the United States weighed on the exchange rate. Even so, the current levels make Brazilian soybeans competitive.
