Appreciation of Beans in Chicago Encourages Brazilians
Brazilian producers have followed up on news about the American soybean crop and the impacts on the market. “From June 23 to July 11, we had an expressive movement for soybean prices. Producers know this is a good time to sell soybeans, and they are taking advantage of this opportunity,” says Daniele Siqueira, market analyst at AgRural.
According to Siqueira, the Brazilian soybean market registered an increase between 8% and 12% on soybean prices in reals per bag of 60 kilos for immediate delivery.
“Producers have been holding on to soybeans for a long time, but marketing improved in May and June. With a rise in prices in Chicago, marketing will accelerate,” says Siqueira. According to an AgRural survey, 70% of the 2016/2017 soybean crop wasn’t sold until June.
According to Siqueira, from January to June, 45.5 million metric tons of soybeans were exported.
“The pace of soybean exports is firm. It is possible for exports to reach 63 million tons of soybeans,” says the analyst. If this forecast is confirmed, it is a record higher than in 2015, when Brazil exported 54.2 million tons.
Even with this more comfortable situation to sell soybeans, prices are not considered good by producers. In June 2017, the average price for soybean sales was R$53.30 ($16.39) per bag of 60 kilos in the city of Sorriso (in the Mato Grosso state). In June 2016, prices were about R$82.70 ($25.43) for a 60-kilogram bag.
Note: Conversions are at the exchange rate of R$3.25 per U.S. dollar.