The sale of soybeans of the new Brazilian soybean crop (2019/20) had a striking advance over the month of December. The remaining volumes of the 2018/19 season had little progress, although there is only a residual volume to be traded.
The maintenance of high levels in domestic market prices for the new season kept growers attentive to opportunities to do new business. Sellers seem to understand that the timing was opportune to sell a good part of their production at profitable levels, entering the new season with a large part of costs covered and good capitalization for a lower need to sell at possibly less favorable times. The strong selling pace led growers to trade in advance the highest share of potential production since the 2015/16 season.
According to a survey conducted by SAFRAS & Mercado, with data collected until January 10, 43.1% of the new Brazilian soybean crop (2019/20) have already been sold, up 5.3% from the month earlier (37.8%). The current index is equivalent to approximately 53.25 million tons already negotiated, out of an estimated output of 123.59 million tons. In the same period of the previous year, the index was 36.3%, while the normal five-year average for the period is 36.4%.
For Brazil’s 2018/19 season, which is in the final stretch of commercialization, 98.5% of a total production estimated at 119.306 million tons have already been sold, an increase of 1.4% over the previous month (97.1%). The index is equivalent to nearly 117.52 million tons. In the same period last year, 98.4% of the crop were already sold, while the normal five-year average for the period is 97.2%.