This week, Brazil saw a significant trade volume of four million tons of soybeans, marking the best performance since mid-June and July of the previous year, according to market consultant Vlamir Brandalizze from Brandalizze Consulting. This surge in trading activity was driven by notable improvements in oilseed prices domestically, including recoveries on the Chicago market and returns to the US$12 level, alongside enhanced premiums. Additionally, producers sought to raise cash to meet their financial obligations.
Of the four million tons traded, 90% were destined for export, with the majority headed to China. Brandalizze explains that these transactions mainly involved supplementary volumes to fulfill existing contracts and shipping commitments for April, May, and June. This uptick in trading significantly bolstered soybean origination in Brazil, buoyed further by recent improvements in premiums.
At port terminals, indicators for spot transactions in April ranged from R$122.00 to R$124.00 per bag, while May contracts were priced between R$125.00 and R$126.00. July contracts commanded prices ranging from R$128.00 to R$130.00. However, the most notable price movements were observed on Thursday, the 14th, with July contracts testing up to R$133.00 per bag and spot transactions reaching R$127.00.
In an interview with Bom Dia Agronegócio on Thursday, market analyst and director of Pátria Agronegócios, Matheus Pereira, noted that soybean prices at ports had increased by up to R$10.00 per bag compared to the lows experienced several weeks prior, approximately 40 to 45 days ago. Pereira expressed optimism about the market's recovery, citing a recent increase of around R$4.00 per bag in port prices over the past seven days, which has bolstered the purchasing power of buyers and originators across Brazil's interior. However, he cautioned that despite improvements, uncertainties and challenges remain in the market landscape.
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