Brazilian soybean trade advances at a better pace in March

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     Porto Alegre, April 12 2021 – The soybean trade of Brazil’s 2020/21 crop performed better in March and the first week of April compared to the last four months. After slight progress in late 2020 and early 2021, trade has moved forward at a more intense pace in recent weeks, with growers once again showing greater interest in new sales. Growers also boosted business with the new crop (2021/22).

     According to a survey conducted by SAFRAS & Mercado, with data collected through April 9, 67.4% of the current Brazilian soybean crop (2020/21) have already been sold, up 4.7% from the previous month (62.7%). The current percentage is equivalent to approximately 90.42 mln tons already traded, out of an estimated crop of 134.09 mln tons. In the same period of the previous year, the index was 73.9%, while the normal five-year average for the period is 56.2%.

     For the new Brazilian soybean crop (2021/22), sales reach 14.2% of a still hypothetical crop. It is important to note that as SAFRAS & Mercado has not yet released its first production estimate for next season, the same production figures of the 2020/21 crop were used for state and national calculations. This methodology will continue until the month of July, when SAFRAS will disclose its traditional planting intention survey for the new crop. We also highlight that Brazilian growers have never negotiated large volumes of soybeans so early. Therefore, we do not have historical data for comparison at this time.

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