Brazil soybean trade slow amid rising freight costs, analysts say

Published Feb 7, 2025

Tridge summary

Brazil's sales of the 2024/25 soybean crop are experiencing slowdown due to increased freight costs, logistical bottlenecks, and cautious traders. Freight costs have risen due to transporting a record harvest and heavy rains in Mato Grosso. This, coupled with narrow profit margins and uncertainties from Chicago, is putting pressure on premiums and encouraging producers to delay sales. As of last month, forward sales were at 39.4% of the total expected production, above last year's figures but below the five-year average.

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

Original content

By Roberto Samora SÃO PAULO (Reuters) - Sales of Brazil's 2024/25 soybean crop are slow, with rising freight costs another factor putting pressure on premiums and producer earnings, which are already seasonally lower during the harvest period, according to experts interviewed by Reuters. In addition, traders are cautious and closing deals with producers only at the "sold end" to reduce freight-related risks. "Freight is the main factor limiting business, and traders are concerned about reducing risks by only closing freight when a deal is closed at the sold end...", said Guilherme Palhares, head of food and beverage research at Santander. Freight is higher due to logistical bottlenecks in transporting a record harvest in Brazil, which could exceed 170 million tons of soybeans, amid rains that are hampering operations in Brazil's main producer, Mato Grosso. In addition, Petrobras raised the price of diesel for distributors by more than 6% in early February. The freight for ...

Source: NoticiasAgricolas