Brazilian soybean sales have another slow month

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     Porto Alegre, August 11, 2020 – The commercialization of Brazilian soybeans of the current season (2019/20) and new season (2020/21) had another period of slower evolution in July and first week of August.

     Despite the continued appreciation of domestic prices in the period, the large volume already sold of the physical crop combined with the large volumes of the new crop already committed have brought a less hectic environment for Brazilian negotiations. Moreover, little by little growers are already preparing for the planting of the new crop, which will start to be sown in September, which disperses the focus on negotiations.

     According to a survey conducted by SAFRAS & Mercado, with data collected up to August 7, 95.7% of the current Brazilian soybean crop (2019/20) were already sold, with a slight advance of 2.8% over the previous month (92.9%). The current index is equivalent to approximately 119.58 million tons already traded, out of an estimated crop of 124.91 million tons. In the same period last year, the index was 78.0%, while the normal five-year average for the period is 81.0%.

     For the new Brazilian soybean season (2020/21), which will start to be sown in September, the survey points out that 43.3% have already been committed from the production estimated at 131.691 million tons, indicating a small advance of 3.5% compared to May (39.8%). In the same period last year, only 15.7% had been sold. The five-year average for the period is 16.0%.

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