Soybeans still yield profit, but exercise caution!

According to analysis by TF Agroeconômica, the current soybean prices in Brazil, with an average of R$ 122.00 per bag in the interior, still provide a profit for producers, albeit reduced. Based on the average costs determined by DERAL-PR (R$ 110.81/bag), profitability is around 10.1%. When prices were higher, the margin reached 32%. However, the consultancy warns of a risky scenario: if China and the United States reach a new trade agreement, quotations in Chicago should rise, but Brazilian premiums could fall from 150 to about 35 cents per bushel — a reduction equivalent to R$ 14 per bag. In this context, the internal price could retreat to R$ 108.00 or less, which would mean a loss relative to current costs. Therefore, the recommendation from TF Agroeconômica is clear: secure the current profit while it still exists by selling part of the production at current levels. Among the factors driving prices up, the consultancy cites the expectation of an end to the Chinese embargo on ...