Difference between requested and offered prices limits soybean sales in Brazil

Uncertainties regarding national soybean production, expectations of greater demand and the recent exchange rate devaluation (US$/R$) have widened the disparity between the prices asked and offered for the oilseed, limiting liquidity in the Brazilian market. On the one hand, producers, especially those in the South region, report major losses in production due to water scarcity in the main period of crop development. On the other hand, agents consulted by the Cepea point out that production in other regions of Brazil must be voluminous, offsetting much of the losses in the South.

Agents also indicate the possibility of greater domestic and international this season, which has left producers reticent in negotiations of the remainder of the 20/21 harvest and also of term contracts for 21/22 harvest. Consumers have also been cautious in recent days, given the devaluation of the dollar and the expectation of the arrival of the new harvest.

No spot nationally, the CEPEA/ESALQ Paraná Indicator rose 1,5% between January 14th and 21st, at R$ 177,33/sc of 60 kg on Friday, 21st. ESALQ/BM&FBovespa Paranaguá (PR) indicator registered an increase of 2%, in the same comparative, at R$ 180,15/sc of 60 kg on the 21st. Among Brazilian regions, however, prices registered different directions. The dollar registered a fall from 1,17% between the last two Fridays, to R$5,457 on the 21st.