Porto Alegre, August 31, 2020 – Soybean prices keep rising in the country’s main markets in August, renewing historic highs. The combination of scarcity of physical product and the buyers’ need has distorted domestic prices.
With very little soybeans available, growers see the positive scenario and keep increasing their offers. Buyers, on the other hand, opt for caution, move away from the market, and are already evaluating imports, which must total 1 million tons, coming mainly from Paraguay.
To complete the positive scenario, export premiums remained firm, around 180 points above Chicago. Futures contracts also rose in Chicago, and the dollar accumulated a strong appreciation, a combination of factors that ensured the continued appreciation.
In the physical market, a 60-kg bag reached BRL 140.00 in Passo Fundo (RS) at the close of the week, against BRL 117.00 one month ago. In Paranaguá, prices jumped from BRL 116.00 to 135.00 but reached BRL 136.00 during the week.
On the Chicago Board of Trade (CBOT), doubts about the impacts of climatic events that have occurred in recent weeks in the U.S. growing belt and China’s rising demand for U.S. soybeans supported futures contracts. The November position appreciated by 5% in the period, ending at USD 9.50 on Friday.
The dollar, on the other hand, had a negative week after reaching the level of BRL 5.60 in the previous week with uncertainties related to fiscal issues in Brazil. The U.S. currency closed Friday at BRL 5.4170, mainly reflecting the new inflation control policy announced by the Federal Reserve.
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