Brazilian soybean prices dropped during the first fortnight of April. The CEPEA/ESALQ Index (Parana state) closed at 29.82 reals or 14.64 dollars per bag of 60 kilos this Monday, April 16th, down 4.3 percent in Real and 3.2 percent in dollar over March 30th.
The new forecast of the National Company for Food Supply (Conab - Brazilian government) for the Brazilian crop season is one factor that pressured soybean values. The report pointed out to 57.96 million tons of soybean on the 2006/07 season, volume 8.5 percent superior to the last crop (2005/06) and 2.2 percent higher than the figure forecast in March.
With the end of the 2006/07 harvest season, Brazilian growers are getting ready for the new season cultivation. The higher soybean dollar prices should stimulate the increase of the planted area in Brazil and probably also in Argentina.
At the Chicago Mercantile Exchange (CBOT), the soybean market has been moving according to weather projections and their influence on corn planting activities that can also impact soybean planting.