Trade of new Brazilian soybean crop advanced well in November

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Sales of the new Brazilian soybean crop (2019/20) registered a good advance in November. The last volumes of physical soybeans are trading at a slightly slower pace, with growers already capitalized and with an eye on the off-season.

The sharp rise in the dollar in November, coupled with high export premiums due to Chinese demand at Brazilian ports, brought new appreciation to Brazilian prices, which encouraged negotiations.

According to a survey by SAFRAS & Mercado, with data up to December 6, 97.1% of the 2018/19 Brazilian soybean crop have already been sold, up 1.9% from the previous month (95.2%). The current index is equal to approximately 115.84 million tons already traded, from an estimated output of 119.306 million tons. In year-ago comparative period the index was 97.5%, while the normal five-year average for the period is 96.0%.

For Brazil’s 2019/20 crop, which is in the final stretch of planting, 37.8% of an initially expected production of 125.46 million tons are already committed, up 3.2% from the previous month (34.6%). The index is equal to approximately 47.45 million tons. In year-ago comparative period, 34.5% of production were already committed, while the normal five-year average for the period is 31.8%.