Cepea, May 5, 2020 – Soybean prices increased sharply in the Brazilian market in April, hitting records at ports. This scenario is linked to the fact that growers have already marketed large amounts of the 2019/20 crop and, now, do not seem interested in trading large volumes in the short and mid-terms – many of these agents tend to store the remaining beans of the season to sell in the coming months. Besides, the sharp dollar appreciation against Real in April (by 4.8%), favored Brazilian soybean exports.
In the international market, Argentina is currently at the crop peak, and failures have been reported. In the Unites States, growers were starting to sow the 2020/21 crop in late April. In Brazil, new volumes should arrive at the market only in early 2021, since sowing should occur in September 2020.
In April, the ESALQ/BM&FBovespa Index in Paranaguá (PR) averaged 102.30 BRL per 60-kilo bag, 7.7% higher than that in March and the highest since September/18, in real terms – values were deflated by the IGP-DI from March/20. The CEPEA/ESALQ Index in Paraná rose by 7.8% between March and April, averaging 95.19 BRL per 60-kilo bag in April, also the highest since September/18, in real terms.
It is worth to mention that most of the crop already traded was allocated to exports, which has been concerning Brazilian processors about the domestic supply in the second semester. It has been reported that processors from Paraná State imported soybean from Paraguay in late April – these processors claimed difficulties to purchase soybean.