Brazilian soybean sales again have little progress in May

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     Porto Alegre, June 8 2021 – The soybean sales of Brazil’s 2020/21 crop again registered slow progress during the month of May and the first week of June compared to the first quarter. Yet, the pace was a little better than that registered in April. With the harvest completed, most production already sold, and good margins guaranteed, growers are starting to speculate more with the US climate market, which may bring opportunities in the coming few months if weather problems occur in the US growing belt. Moreover, May was another month of decline for the dollar against the Brazilian currency, which disfavored the formation of internal prices. The sum of these factors was essential to explain the low selling interest.

     According to a survey carried out by SAFRAS & Mercado, with data collected up to June 4, 75.6% of the current Brazilian soybean crop (2020/21) have already been sold, up 4.2% from the previous month. The current percentage is equivalent to approximately 103.743 million tons already traded from the production estimated at 137.194 million tons. In the same period of the previous year, the index was 88.7%, while the normal five-year average for the period is 71.5%.

     For the new Brazilian soybean crop (2021/22), the percentage sold reaches 19.2% of a still hypothetical crop. In the same period of the previous year, the committed percentage reached 35.6%, while the five-year average is 14%. It is important to highlight that as SAFRAS & Mercado has not yet released its first production estimate for the next crop, the same production figures as in the 2020/21 crop were used for state and national calculations. This methodology will continue until the month of July when SAFRAS will release its traditional survey on the planting intentions for the new crop.

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