Brazil's advance soybean sales drag amid planting and low prices

 

Vendas antecipadas de soja do Brasil se arrastam em meio ao plantio e baixos preços
 

Cepea analysis pointed out that liquidity in the Brazilian soybean market is weakened

Advance sales of soybeans in Brazil have advanced little in the last two months, data from consultancy Safras & Mercado showed this Monday, reflecting the retraction of oilseed producers at a time of low prices, focus on planting work and expectations with future fluctuations .

The commercialization of the 2016/17 soybean harvest, which will be harvested from the first quarter of next year, had reached 25 percent of the total expected volume, as of November 4th.

In the survey up to September 9, the rate was 20 percent.

According to Safras, the historical average for the beginning of November is 30 percent, having reached 41 percent on November 4, 2015, referring to the 2015/16 harvest.

 

“Taking into account a harvest estimated at 103.477 million tons, the total soybeans already negotiated is 26.130 million tons”, highlighted the consultancy.

“Sellers have no intention of negotiating grain at the current price level. Soybean farmers, in turn, remain attentive to the cultivation of the 2016/17 harvest, with no interest in setting prices for the product for this new season. On the demand side, industry agents and also exporters are not active in purchases”, said the research center linked to the University of São Paulo.

Soybean prices on the spot market, which reflects deals with grains available at the port of Paranaguá, have accumulated losses of more than 20 percent since a peak in mid-June, also according to the Esalq/BM&FBovespa indicator.

In recent weeks, a slight increase in soybean prices on the Chicago Stock Exchange was overshadowed by a devaluation of the real against the dollar, which depresses the price of soybeans in the domestic market.   

In a recent interview with Reuters, the president of the soybean trading and crushing company Algar Agro projected that the soybean sales business from Brazil's new harvest should remain quite slow over the next few months and evolve only when the harvest begins, due to the retraction of sales outlets. and buyers.

 Source: Reuters

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