Brazilian soybean prices rise in April, following Chicago


     Porto Alegre, May 4 2021 – Soybean prices rose in the country’s main regions in April, following the good appreciation of futures contracts on the Chicago Board of Trade. The appreciation was limited by the fall of the dollar against the real and the decline in export premiums. Even so, prices tested new highs in some locations.

     The business pace remained slow, with some periods of greater movement but always involving occasional and moderate volumes. Growers continued outside of the market, prioritizing the completion of the harvest.

     In Passo Fundo (RS), a 60-kg bag started April at BRL 171.00 and closed at BRL 174 last Friday. At the week’s high, last Monday, a bag reached BRL 179.00. At the port of Paranaguá, the price behavior was similar, rising from BRL 175.00 to 180.00, after peaking at BRL 184.50. In Rondonópolis (MT), prices went from BRL 166.00 to 173.00, with the month’s high at BRL 174.00.

     The firmness in domestic prices is a reflection of the CBOT performance. In April, contracts with delivery in July accumulated an increase of 7.46%. In the last session of the month, the position closed at USD 15.34 per bushel. On the 26th, the contract reached USD 15.39, the highest closing level of the month.

     This level was reached after a series of 10 consecutive sessions of gains, reaching the best level since 2013. The rise in Chicago was determined by concerns about the beginning of the soybean planting in the United States, amid low temperatures, strong speculative movement, and a fundamentally bullish picture, with tight stocks and strong demand in the United States.

     Chicago’s positive impact was limited by the other two important points in the formation of domestic prices. The dollar ended the month near two-month lows. The US currency accumulated a fall of 3.55% in the period and closed last Friday at BRL 5.4290. Export premiums also declined in April, erasing part of the gains in Chicago.

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