Brazil: Soybean prices ahead of USDA stocks report

The Brazilian soybean market recorded stable to higher prices this Friday (27). The market had moderate movement on the day, paying better than the export parity in some regions. With the strong rise in Chicago, the spread narrowed a little. However, with tighter soybean stocks and the search for available soybeans, there was a detachment. Soybean futures contracts traded on the Chicago Mercantile Exchange (CBOT) closed Friday with a strong rise. Concerns about the persistent dry weather in Brazil – the forecast is for little rain and rising temperatures next week – caused prices to soar. Meal led the gains, with increases of around 5%. “China has very short bran stocks and the prospect of an accelerated buying movement by that country justifies today's increase,” said Safras & Mercado analyst Gabriel Viana, who considers, however, today's increase to be exaggerated and based on speculative movements. The market is also positively digesting the stimulus package for the Chinese ...