Brazil FOB soybean prices drop to near 14-month low

Published 2023년 3월 16일

Tridge summary

Brazilian FOB soybean outright prices have fallen to a nearly 14-month low, below $550/mt, due to a record crop and weak spot demand both internationally and domestically, leading to pressure on cash premiums. The current SOYBEX FOB Santos price for April is $548.33/mt, the lowest since January 2022. This situation is largely due to the historically large Brazilian soybean crop, estimated to be 153 million mt, an 18% increase from the previous year. Chinese importers have secured most of their soybean needs for the coming months, and domestic demand in Brazil is low as well. Negative crush margins have further discouraged additional purchases by Chinese buyers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Brazilian FOB soybean outright prices have fallen below the $550/mt mark to a nearly 14-month low amid a record crop and faltering spot demand on both the export and domestic front, with subsequent pressure over cash premiums. The SOYBEX FOB Santos price for April dates was assessed at $548.33/mt March 13, the lowest for front-month loading cargoes since Jan. 24, 2022, showed data from S&P Global Commodity Insights. The basis for the same period was at plus 1 cent/bushel to the Chicago Board of Trade May (K) contract, a level not seen since mid-June 2021. Participants attributed the bearish situation mainly to the historically large Brazilian soybean crop. Despite some rain-led harvest delays in the past weeks, the country remains on track to produce a record-breaking 153 million mt of the oilseed, up 18% on the year, according to the US Department of Agriculture’s latest estimate. The pace of farmer sales has improved recently in response to the strength of the US dollar against ...

Source: UkrAgroConsult