The risk of losses in the US soybean crop production in 2006/07 is almost zero, basing on reports elaborated by USDA and private companies. In this context, there are no fundaments that could increase futures for the grain in the short term.
In Brazil, exports premiums remain positive. The CEPEA/ESALQ Index for the soybean (Paraná state) kept almost unchanged (up 0.47 percent) in August, to 12.73 dollars per bag of 60 kilos on August 30.
Last weeks, the domestic soybean market has been quite calm. Futures haven't changed so much and the exchange rate keeps appreciated. There is no motivation for trades. Brazilian growers who decided to stock soybean to sell it in the second semester had a negative income, according to Cepea.
Brazilian soybean crop production starts to be planted in September, intensifying in October.