With farmers away from the market, quotes rise in Brazil

Cepea, April 1st, 2021 – Soybean prices increased in the Brazilian market in March, reflecting valuations abroad, the dollar appreciation against Real and farmers’ lack of interest in new sales. It is worth to mention that more than 50% of the 2020/21 crop has been sold, and farmers are opting for harvesting and stocking the beans, expecting to receive higher prices in the coming months.


Sellers are based on the higher export premiums from June onwards compared to remuneration in the domestic spot market.


In the spot market, the ESALQ/BM&FBovespa Index Paranaguá (PR) rose by 3.49% between February 26 and March 31, to 173.30 BRL (30.82 USD) per 60-kilo bag on March 31. The CEPEA/ESALQ Index Paraná increased by 3.69% in the same period, to 166.44 BRL (29.59 USD)/bag on March 31. The dollar rose by 0.77% in the month, to 5.624 BRL on March 31.


The high prices for road freight, which reduce farmers’ revenue, also made farmers unwilling to close new deals.


HARVESTING – Data from Imea show that the soybean harvesting has reached 91.75% of the state area in Mato Grosso, less than the 98.38% from a year ago. The average productivity in this state is 2.17% lower than that last season, according to Imea.


The soybean harvesting is ending in Paraná too, majorly in western PR, where quality and productivity are higher than expected, according to agents consulted by Cepea.


In Rio Grande do Sul, higher rainfall favored the crops already sown. Agents consulted by Cepea believe that if moisture continues within the ideal in the coming days, productivity may be higher than that last season. Emater/RS estimates production to surpass 20 million tons in RS, a staggering 80% up from that in the previous season.


According to Conab (Brazil’s National Company for Food Supply), 60.1% of the area sown with soybean in Brazil had been harvested up to March 19. Among the states, 91.7% of the area in Mato Grosso has been harvested; 82% in Goiás; 81% in Mato Grosso do Sul; 72% in Minas Gerais; 65% in São Paulo; 58% in Paraná; 48% in Santa Catarina; 37% in Tocantins; 40% in Maranhão; 19% in Bahia; 24% in Piauí; and 5% in Rio Grande do Sul.







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