Porto Alegre, August 10 2021 – July was another month in which the pace of soybean trading changed little in Brazil. Although Brazilian prices registered less volatility and greater support in the period, the selling side once again showed little interest in new business.
Most growers are well-capitalized on the good margins achieved in the first half of the year. Furthermore, growers are also beginning to prepare for the planting of the new crop, which begins in September in some states. Completing the picture, part of the selling end also speculates with the new US crop, which is going through some problems that could reduce the productive potential of crops, which could bring breath to Chicago in the last months of the year. All these factors led to another period of few negotiations in the Brazilian market.
According to a survey carried out by SAFRAS & Mercado, with data collected until August 6, 81.9% of the current Brazilian soybean crop (2020/21) have already been sold, up 2.7% from the previous month (79.2%). The current index is equivalent to approximately 112.331 million tons already traded from the production estimated at 137.194 million tons. In the same period of the previous year, the index was 95.7%, while the normal five-year average for the period is 83.5%.
For the new Brazilian soybean crop (2021/22), the percentage sold reached 23.7%, up 2.2% from the previous month (21.5%), equivalent to approximately 33.649 million tons of a crop initially estimated at 142.236 million tons. In the same period of the previous year, the committed percentage reached 43.3%, while the five-year average is 20.6%. The initial estimate for new crop production is part of SAFRAS & Mercado’s traditional soybean planting intention survey, released on July 16.
Copyright 2021 – SAFRAS Latam