Porto Alegre, June 28, 2021 – The Brazilian soybean market practically stopped last week in terms of sales. With another widespread decline in domestic prices, traders moved away from the market. The sharp low in the dollar and the continued movement of losses in Chicago hampered the movement, even with the rise in premiums.
Between June 18 and 25, a 60-kilogram bag dropped from BRL 146.00 to 144.00 in Passo Fundo (RS). In Cascavel (PR), prices slid from BRL 146.00 to 145.00. In Rondonópolis (MT), prices fell from BRL 148.00 to 140.00. In Paranaguá, prices decreased from BRL 152.00 to 150.00.
The exchange rate was the main pressuring factor last week. The dollar accumulated a decline of 3.27% in the period. The currency retreated from BRL 5.071 to 4.905. For the first time in almost a year, the dollar fell below the BRL 5.00 mark.
Completing the negative scenario, the CBOT futures contracts consolidated the trend change triggered the week earlier and continued to lose ground. The July position had a 4.75% low, falling from USD 13.96 to 13.29 per bushel.
Even with signs of heating demand for US soybeans, funds and speculators continued to sell positions. The return of rain to the producing regions of the United States indicates improvement in crop conditions and a full crop. Besides, factors such as the Chinese threat of intervention in the commodities market and the US Supreme Court ruling that could affect the demand for biofuels have catalyzed the negative movement. The positive factor was that amid the lows in Chicago, China resumed the purchases of soybeans in the United States last week, a fact that slightly limited the correction movement.
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