Sellers stay away from the market and quotes increase in BR

Cepea, October 1 2019 – Brazilian soybean growers stayed away from the spot market in September – and from trades involving the 2019/20 crop –, due to both sowing difficulties and uncertainties about the USA-China trade war. The lack of rains was hampering fieldwork in many regions, despite the end of the host-free period. Uncertainties about the weather in the 2019/20 season and decreases in exports premiums also kept agents away from the market in September. Purchasers, in turn, closed term contracts, aiming to receive the product in the first quarter of 2020.

 

This scenario pushed up soybean prices in the Brazilian market. Thus, between September 2 and 30, the ESALQ/BM&FBovespa soybean Index for Paranaguá averaged 86.50 BRL per 60-kilo bag, 1.6% higher than that in August. The CEPEA/ESALQ Index for Paraná, in turn, averaged 80.43 BRL per 60-kilo bag, 2.1% up in the same comparison.

 

FIELD – It rained in some regions of São Paulo, Paraná, Mato Grosso and Mato Grosso do Sul States in late September. However, precipitation was scattered and, according to Cepea collaborators, not enough to allow sowing to continue. However, farmers did not interrupted fieldwork, only slowed down the pace, aiming to produce a second crop in early 2020.

 

In Paraná, 3% of the area allocated to soybean crops had been sown until September 22, according to data from Deral/Seab. Of the total output estimated for Paraná (19.8 million tons), 15% may have been traded, and still according to Deral, 22% of the output from Paraná (2018/19 crop) needs to be marketed.

 

In Mato Grosso, the sowing pace is slow. According to Imea, activities have not reached 1% of the area yet.

 

(Cepea-Brazil)

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