Derivatives: expected reduction in demand for soybean meal

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“With lower domestic soybean and meal prices, gross crush margins fell by 20%,” IMEA added. Corn prices on the domestic market also fell during the week, with available prices falling by 1.0%, to R$ 78.31 (US$ 15.10) per 60kg bag.

“As a result, the difference between domestic prices and CBOT futures increased by 9.7% for the week, to R$ 10.11 (US$ 1.95) per bag. Brazilian futures on the commodities exchange also fell 2.7% in the week, to R$ 95.36 per bag”, added the TF.

In this scenario, for another week, there was a decline in bran prices on the domestic market, with buyers practically absent from the market, having already closed good volumes last week. “In Paraná, bran prices ranged from R$ 2,100.00 to a maximum of R$ 2,200.00 on the FOB, where buyers had greater strength in the declines. Apparently, the reductions were only accepted in the face of high prices for soybean oil, which have reached averages of R$ 7,000.00 in FOB prices, with 12% of average taxation. Demand is strong, driven by biodiesel, which still has the advantage of purchasing volumes on a deferred basis”, he indicated.

By: Leonardo Gottems | agrolink