In March, Brazilian soybean prices decreased expressively, due to financial turbulences of the global market caused by the US subprime housing sector. Not even the raise at the end of last month was enough to support domestic values.
The ESALQ/BM&F Index (delivered in the Paranaguá port) downed 14 percent in Real from February 29th and March 31st, closing at 44.00 reals or 25.10 dollars per bag of 60 kilos. The CEPEA/ESALQ Index (Paraná state) also devaluated, 12.7 percent in Real, at 42.78 reals or 24.40 dollars per bag.
At the end of March, futures returned to move according to supply and demand bases, instead to be based on the financial market. Even with forecasts about higher soybean planted area in the North-American new crop, final stocks are low, which supports quotations. Besides that, the Argentine soybean exports restriction should favor Brazilian trades. (Cepea - Brazil)