Soybean sales decline due to price disparity

The pace of soybean sales decreased significantly in Brazil, due to the disparity between the prices asked by sellers and offered by buyers. In addition to the uncertainties regarding world production for the 2019/20 harvest, the devaluation of the dollar against the Real and futures contracts on the CME Group (Chicago Stock Exchange) widened the difference between values. On the one hand, Brazilian producers consulted by Cepea remain reluctant to sell remaining lots from the 2018/19 harvest and limit the supply of contracts for 2020. Therefore, many soybean growers show a preference for selling FOB rather than exporting, due to the more attractive price offered by domestic industries. Industry representatives, in turn, indicate that they have reduced grain stocks, with batches to be crushed until mid-November only. As for prices, Cepea research indicates that although they have registered a drop, the October average exceeds that of September, reflecting greater demand.