Gap between prices lowers liquidity in the Brazilian market

Cepea, June 19 2019 – The gap between bidding and asking prices widened in the Brazilian market in the first fortnight of June, lowering liquidity in the spot market. In general, producers were away from the market, due to uncertainties about the soybean crop in the United States, where high moisture continues to delay sowing activities, concerning agents about yield and quality. Moreover, most Brazilian growers were not in need of cash flow, postponing to the second semester trades of the soybean remaining.


Imea data indicate that, up to early June, 79.59% of the 2018/19 season in Mato Grosso had been traded, less than the 85.58% registered in the same period of 2018. Regarding the 2019/20 season, roughly 19.5% of the production in Mato Grosso had been marketed, slightly lower than the 20.83% observed in the same period last year. In Paraná, Seab/Deral has reported that 52% of the 2018/19 production has been traded, below the 61% from last season.


PRICES – Between May 31 and June 14, the ESALQ/BM&FBovespa soybean Index at Paranaguá remained practically stable (+0.18%), to 82.73 BRL (21.25 USD) per 60-kilo bag on June 14. In the same comparison, the CEPEA/ESALQ Index for Paraná rose a slight 0.7%, to 77.67 BRL (19.95 USD) per 60-kilo bag on June 14.

EXPORTS – In May, Brazil exported 10.8 million tons of soybean, 7.7% more than in April, but 12.2% less than in May/18, according to Secex. However, shipments between January and May 2019 were 3.7% higher than that in the same period last year, totaling 37.2 million tons.


China is still the number one destination for the Brazilian soybean, having imported 7.52 million tons in May, 69.4% of the total Brazilian exports of soybean in the month. Shipments to Mexico grew sharply in May, totaling 202 thousand tons, almost three-fold the volume exported in April and 77% higher than that from May/18.




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