Brazilian growers showed little interest in sales of soybeans in June

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Sales of Brazilian soybeans from the current (2019/20) and new (2020/21) crops again had a period of little progress in June and the first days of July.

As expected, low availability of soybeans from the old season and the large volume already committed of the new season led to a slower pace of negotiations, a scenario that must remain until the arrival of the 2020/21 crop.

According to a survey carried out by SAFRAS & Mercado, with data collected until July 3, 92.9% of the current Brazilian soybean crop (2019/20) have already been sold, with a small advance of 4.2% over the index of the previous month (92.9%). The current index is equivalent to approximately 115.81 million tons already traded, out of an estimated production of 124.61 million tons. In the same period of the previous year, the index was 71.1%, while the normal five-year average for the period is 74.8%.

For the new Brazilian soybean crop (2020/21), which starts being sown in September, the survey indicates that 39.8% of a hypothetical production (based on the 2019/20 crop) have already been committed, indicating a small advance of 4.2% over the May figure (35.6%). In the same period of the previous year, only 14.7% had been sold. The five-

year average for the period is 12.4%. Area and production data of the current crop were used to calculate the index of commitment of the new crop. The first official estimate by SAFRAS & Mercado for area, productivity, and production of Brazil’s new soybean crop is traditionally released in July.