Cepea, August 5 2019 – Soybean trades were slow in the Brazilian market in July, both in the spot market and for term contracts. As sellers have already traded a large volume of the 2018/19 crop, they were not interested in closing new deals.
As for the demand, agents from processing plants seemed to be stocked up, and those with low inventories purchased only small volumes of soybean. Concerning the 2019/20 season, purchasers seemed more interested in closing deals, however, sellers were away from the market.
PRICES – Besides the slow trading pace, US dollar drops helped to press down quotes in Brazil too. Between June 28 and July 31, the ESALQ/BM&FBovespa soybean Index at Paranaguá dropped 5.5%, to 77.29 BRL (20.35 USD) per 60-kilo bag on July 31. In the same comparison, the CEPEA/ESALQ Index for Paraná decreased 4.4%, to 72.35 BRL (19.05 USD) per 60-kilo bag. As for the US dollar, it closed at 3.798 BRL on July 31, 1% down compared to that on June 28.