Exports premiums for soybean by-products are the highest since 2014

Cepea, December 17, 2019 – Firm demand for soy oil and meal in Brazil boosted the exports premiums for these by-products to the highest levels for a month of December since 2014. This scenario has pushed up the domestic quotes for soy oil and meal in Brazil.

 

The fast trading pace in the beef cattle market favored the demand for soybean meal in that period. As regards soy oil, higher demand is linked to biodiesel production – in September 2019, the share of soy oil in oil diesel production increased to 11%.

 

Thus, between November 29 and December 13, prices for soybean by-products were the highest, in nominal terms, since September 2018 in some regions surveyed by Cepea. On the average of the regions surveyed by Cepea, soybean meal quotes rose 2.1% between November 29 and December 13. In that same period, prices for the soy oil (crude degummed) delivered in São Paulo city increased 0.5%, to 3,664.96 BRL per ton on December 13.

 

SOYBEAN – Soybean prices dropped in the Brazilian market in the first fortnight of December. This decrease was linked to expectations for a commercial agreement between the United States and China (which had not been closed until Dec. 12) – on Dec. 13, news indicated an agreement between these two countries, which may hamper Brazilian sales to China next year.

 

Domestic quotes were also pressed down by better weather conditions in Brazil – frequent rains continued to favor crops. Agents consulted by Cepea believe that, in this scenario, Brazil may harvest a higher volume than that last crop.

 

In the Brazilian market, the ESALQ/BM&FBovespa Index for soybean in Paranaguá and the CEPEA/ESALQ Index for soybean in Paraná decreased 2.33% and 2.09% from Nov 29 to Dec. 13, respectively, closing at 87.96 BRL/bag (21.42 USD/bag) and at 83.11 BRL/bag (20.24 USD/bag) on Dec. 13.

 

(Cepea-Brazil)

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