Soy establishes itself in Brazil with positive premiums after 8 months, says Cepea

Market & Price Trends
Published Apr 13, 2024

Tridge summary

Last week, Brazil witnessed a notable uptick in soybean negotiations due to increased international demand, leading to a temporary rise in export premiums for the first time in eight months, as highlighted by the Center for Advanced Studies in Applied Economics (Cepea). This surge was bolstered by the dollar's appreciation against the real, enhancing the attractiveness of Brazilian soy to foreign buyers. Although premiums at the port of Paranaguá showed some fluctuation, certain future shipments maintained positive premiums. Additionally, domestic soybean prices saw an increase, driven by the advantageous exchange rate and anticipated reduction in national production, with projections indicating a 5.2% decrease from the previous record harvest.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

SÃO PAULO (Reuters) - Negotiations involving soybeans in Brazil were intensified last week, driven by greater demand, especially from abroad, which helped to raise export premiums in the country to positive levels for a few days, something that had not happened in eight months, assessed the Center for Advanced Studies in Applied Economics (Cepea). The Esalq/USP study center also highlighted the appreciation of the dollar against the real, which made Brazilian commodities more attractive to importers, according to an analysis published this Friday. The North American currency closed at 5.09 reais on sale on Thursday, the highest level since October 9 last year. This Friday, the soybean premium at the port of Paranaguá compared to the futures contract on the Chicago Stock Exchange was once again negative at 20 cents per bushel for shipment in April, but reached a positive 10 cents per bushel during the course of this week, said Cepea. For May, there was an offer of up to 15 ...
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