Soybean trade had another strong advance in Brazil last month

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The commercialization of Brazilian soybeans of the current (2019/20) and new (2020/21) crops again registered a major advance in March and first days of April.

The maintenance of the dollar at high levels coupled with a strong demand for exports again brought a positive environment for prices, which encouraged sales.

According to a survey conducted by SAFRAS & Mercado, with data collected until April 9, 73.9% of the current Brazilian soybean crop (2019/20) have already been sold, with a strong advance of 12.9% compared to the previous month (61.0%). The current percentile is equivalent to approximately 91.74 million tons already negotiated, out of an estimated production of 124.19 million tons. In the same period of the previous year, the index was 48.3%, while the normal five-year average for the period is 51.4%.

For the new Brazilian soybean crop (2020/21), which begins to be planted in September, the survey shows that 21.4% of a hypothetical production (based on the 2019/20 season) have already been committed. Area and production data from the current crop were used to calculate the percentile of commitment of the new crop. The first official estimate by SAFRAS & Mercado for area, productivity, and production of the new Brazilian soybean crop is traditionally released in July.