Soybean meal prices fell in the first half of January this year, following the declines seen for soybeans. The expectation of a larger harvest in the country in the current season (2016/2017), the beginning of the harvest and the increase in crushing in the short and medium term are the main factors driving down grain and bran prices on the domestic market.
According to a survey by Scot Consultoria, in São Paulo, a ton of soybean meal is quoted, on average, at R$1,217.07, without freight. There was a drop of 4.0% in relation to December/16. Compared to January last year, the input costs 8.1% less.
In the short and medium term, the expectation is for a soft market. However, despite the progress of harvesting and crushing in the country, issues such as climate and exchange rate deserve attention.
In the case of climate, the most complicated situation occurs in Argentina, due to excessive rainfall and flooding in important producing areas. The country is a major exporter of soybean meal and oil.
