Undefined prices reinforce slow market pace

Fewer trades were settled in Brazilian soybean market last days, because of undefined prices. At the same time, growers are concerned about the profitability of the 2008/09 crop. The high costs of production are one of the aspects that should limit the culture growth next season.

From July 31st and August 15th, the CEPEA/ESALQ Index (Parana state) decreased 7.65 percent in Real, closing at 43.32 reals or 26.44 dollars per bag of 60 kilos on Aug 15th. For the product delivered at Paranaguá port, the ESALQ/BM&F Index devaluated 7.77 percent in Real, averaging 45.35 reals or 27.68 dollars per bag.

Traders offered higher values, once there have not been enough inventories to fulfill shipments. A great part of growers, however, kept retreated. The latest USDA report contributed to support domestic and international soybean quotations. The United States should produce 80.9 million tons in the 2008/09 crop, inferior volume compared to that published in July (81,65 million tons). The reduction is linked to the lower productivity, forecasted at 2.73 tons per hectare, inferior to the data estimated in July (2.80) and lower than 2.77 reached in the 2007/08 crop.

In Brazil, the production is estimated to total 62.5 million tons, volume 1.5 million superior to the 2007/08 crop. The productivity, however, should decrease 1 percent compared to the previous year, averaging 2.84 tons per hectare. (Cepea - Brazil)



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