The domestic market soybean market moved slowly last days, as usual for this off-season period. Domestic prices keep firm. The CEPEA/ESALQ Index (Parana state) upped 4 percent between October 31st and November 30th, closing the period at 15.43 dollars per bag of 60 kilos.
Differently from the previous three seasons, Brazilian soybean anticipated trades are increasing in 2006. In the 2003/04 and 2004/05 crops, soybean growers were not interested on anticipated trades. In 2005/06 season, when growers were in need of capital, the interest for anticipated trades increased a little.
The current scenario points to a larger exported volume between March and May of 2007, period often used to deliver the anticipated trades. Prices are also attractive, which help the growers' decision to anticipate trades.
Figures strengthen the forecast of higher domestic prices in the next season, as well as the non-necessity of Brazilian government support, in order to guarantee the minimum price.