Cepea, July 2, 2021 – Soybean prices have dropped to the lowest nominal level of the year in Brazil, largely pressed by the dollar depreciation and the lack of compensation through export premiums. The recent price swings abroad also influenced devaluations in the Brazilian market.
On June, the ESALQ/BM&FBovespa Index Paranaguá (PR) dropped by 8.6%, closing at 158.12 BRL (31.80 USD)/60-kilo bag on June 30. In June 25, the Index close at 148.74, the lowest nominal level since December 11, 2020. The CEPEA/ESALQ Index Paraná decreased by 8.82% in the month, to 153.38 BRL (30.84 USD)/60-kilo bag on June 30.
Another factor that is influencing soybean prices in Brazil is the devaluation of the by-products, which leads agents from processors to put pressure on the purchasing prices for the raw material.
Fearing steeper price drops in the coming days, some Brazilian soybean farmers increased supply in the domestic market. However, purchasers were not interested in closing deals in the spot market of term contracts, which resulted in low liquidity.