Brazilian soybean prices fall in May

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     Porto Alegre, June 1 2021 – Soybean prices dropped in the Brazilian market in May, a month marked by little trading interest, resulting in sluggish commercialization. Futures contracts accumulated a slight devaluation in Chicago, after a period of strong swings. The dollar fell against the real, contributing to the fall in domestic prices.

     In Passo Fundo (RS), a 60-kilogram bag opened the month at BRL 178.00 and was pegged at BRL 170.50 on May 28. In the same period, prices fell from BRL 178.00 to 170.00 in Cascavel (PR). In Rondonópolis, they fell from BRL 174.00 to 169.00. At the port of Paranaguá, a bag dropped from BRL 183.50 to 173.00.

     On the Chicago Board of Trade (CBOT), contracts maturing in July registered an 0.24% devaluation, at USD 15.30 per bushel. However, over the month the position closed at USD 16.42 on May 12, the highest level in more than nine years. Last week, however, the contract operated below USD 15.00.

     Chicago’s volatility was determined by the ‘weather market.’ The tight picture projected for global stocks, even with estimates indicating greater crops, helped to determine the strong fluctuations in the period. Moreover, the good pace of the US planting and possible larger final area also bring volatility. The market also continues to assess the behavior of Chinese demand.

     The dollar fell 3.98% this month, closing at BRL 5.213 on May 28. For most of the month, export premiums retreated at Brazilian ports. Last week, premiums reacted, given the prospect of China shifting its demand from the United States to Brazil.

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