Cepea, May 3, 2021 – Although the harvesting is ending in Brazil, soybean prices were at record levels (in nominal terms) in the domestic market in April – however, when prices are deflated, the current level is the highest since January/21. The boost came from both firm demand and international valuations, which were linked to the low surplus from the 2020/21 crop in the United States. Unfavorable weather during the sowing of the 2021/22 crop in the USA also helped to push up soybean prices.
Besides, the price rises for soybean were also influenced by the valuation of soy oil. The demand for this by-product was higher than supply in the USA, and, thus, international prices for soy oil in April were the highest since July 2008, in nominal terms.
BRAZIL – Between March 31 and April 30, the ESALQ/BM&FBovespa Index Paranaguá (PR) and the CEPEA/ESALQ Index Paraná increased by 3.7% and 3.4%, respectively, to 179.72 BRL (33.07 USD) and 172.10 BRL (31.67 USD) per 60-kilo bag on April 30. On April 27, both Indexes set nominal records in their respective series, closing at 183.02 BRL (33.49 USD)/bag (Paranaguá) and at 176.56 BRL (32.31 USD)/bag (Paraná).
Domestic price rises were constrained by decreases in the export premiums for soybean and soy oil and by the dollar depreciation against Real.
2021/22 SEASON – Some Brazilian soybean farmers opted for selling part of the 2021/22 crop rather than the 2020/21 crop. More than 50% of the output from 2020/21 has already been traded, and, aware of the higher export premiums, sellers were stocking the remaining to sell in the coming months.