The downward trend in Brazilian soybean market is bringing concern to growers, which faced high costs of production in the planting period. Between January 30th and February 27th, the CEPEA/ESALQ Index (Paraná state) dropped 8.5 percent in Real, closing at 44.70 reals or 18.85 dollars per bag of 60 kilos. For the product delivered at Paranaguá port (ESALQ/BM&F Index), the devaluation was of 7.8 percent in Real, to 46.57 reals or 19.64 dollars per bag.
Some of the reasons for these decreases are the harvesting progress in Brazil and the weak demand in domestic and international markets, which resulted in decreasing values at the Chicago Mercantile Exchange (CBOT). Moreover, some Brazilian growers, in need of cash, offered a larger supply. The rains in Argentina reinforced the downward trend.
Regarding harvest activities, the climate has been favoring activities in some Brazilian regions, such as Maracaju (Mato Grosso do Sul state) and Triângulo Mineiro (Minas Gerais state). However, in other ones, like in Goiás, Mato Grosso and Paraná states, growers are in alert with the rains. For a while, in general terms, activities are moving at good pace. (Cepea - Brazil)