Nov 19, 2019
Domestic Soybean Prices in Brazil Continue to be Strong
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Brazilian farmers have forward contracted 35% of their anticipated 2019/20 soybean production at some very attractive domestic prices. In fact, it has been reported that some domestic buyers are willing to outbid exporters for needed supplies. At some locations, domestic buyers are willing to pay R$ 1.00 per sack (approximately $0.11 per bushel) more than exporters.
In Mato Grosso soybean prices increased as much as 1.3% last week to the range of R$ 77.00 to R$ 84.50 per sack (approximately $8.75 to 9.60 per bushel using an exchange rate of 4.0 Brazilian reals per bushel).
In addition to strong demand, a weaker Brazilian currency compared to the U.S. dollar also contributed to the higher prices. At its weakest point last week, the exchange rate hit 4.2 reals per dollar, which results in higher prices.