Oct 06, 2020
Brazil Soybeans R$ 160.00 per sack (approximately $13.35 per bu.)
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Chinese buyers came back into the market last Friday and as a result, soybeans in Sorriso, Mato Grosso last Friday traded as high as R$ 160.00 per sack (approximately $13.25 per bushel). The prices hit and then surpassed the previous record high price for soybeans in Brazil. One analysts in Brazil called the price "unimaginably high."
I realize it is hard to wrap your head around a soybean price in Brazil of R$ 160.00 reals per sack. Look at it this way, this is double the price of one year ago. To make it comparable to the United States, it would be like American farmers selling their soybeans for $15 to $16 per bushel.
With the delay in soybean planting in Brazil, there is now almost a guarantee that there will be shortage of soybeans next February when the U.S. exports are winding down and the Brazilian soybean harvest is delayed. As a result, some analysts in Brazil feel the price of soybeans could go even higher before it is all said and done.
There is a tremendous price incentive to plant soybeans in Brazil, so even if the planting continues to be delayed, Brazilian farmers will plant as many soybeans as possible and as late as possible.