Dispute between US and China boosts domestic soybean values

The intensification of the trade war, and now the exchange rate, between the United States and China has sharply raised soybean prices in Brazil in recent days. According to Cepea researchers, the recent devaluation of the Chinese currency against the dollar makes Chinese purchases of North American products more expensive, moving buyers of agricultural commodities to Brazil. 

Furthermore, the greater Chinese demand for Brazilian soybeans was also favored by the devaluation of the Real against the dollar – the Brazilian currency remained practically stable against the Chinese (Renminbi – CNY) during the period. In this scenario, between August 2nd and 9th, the ESALQ/BM&FBovespa Indicator for Paranaguá soybeans (PR) rose 4,2%, to R$83,58/60 kg bag on Friday, the 9th. The CEPEA/ESALQ Indicator Paraná, in turn, advanced 4,3%, to R$ 77,53/sc of 60 kg on Friday.