Record dollar boosts soybean values, which exceed R$ 92,00/sc

The dollar at a record level continues to increase soybean prices in the Brazilian market, as it makes the grain more attractive to importers. Between February 28th and March 6th, the ESALQ/BM&FBovespa soybean indicators Paranaguá (PR) and CEPEA/ESALQ Paraná rose significantly by 3,2% and 4,1%, with respective closings at R$ 92,80/sc of 60 kg and R$ 86,32/sc, on Friday, the 6th. These are the highest nominal levels since the beginning of October 2018. On Friday, the North American currency reached R$ 4,629, a significant appreciation of 3% compared to the previous Friday. According to Cepea employees, despite the increases, some soybean growers were focused on harvesting the oilseed, preferring to wait for new valuations to negotiate greater volumes. 

Sellers' caution is also based on the possible reduction in the supply of Argentine soy complex on the international market, which could favor Brazilian sales. The increase in the tax on exports (“retenciones”) of soybeans and derivatives was made official and came into force on Thursday, 5th – the rate went from 30% to 33%. As Argentina is the world's main exporter of soybean meal and oil, the increase in taxes in that country could lead international consumers to purchase greater volumes from Brazil and the United States.