According to Cepea's daily survey, soybean prices in the Brazilian physical market closed on Thursday (14.02) with average soybean prices rising 0.78% in ports and 0.88% in the interior. According to T&F Consultoria Agroeconomic, the movement was due to greater demand from China to buy more Brazilian soybeans – which increased premiums and prices in Brazil. “On a day when Chicago fell 13 points or 1.42% and the dollar fell another 0.34%, how can soybean prices [on the rise in Brazil] be explained? Due to the increase in premiums, which rose 5 cents/bushels for March, 3 cents for April and 2 for June, which, in turn, responded to pressure from Chinese demand on Brazilian soybeans that continued this Thursday”, points out the analyst from T&F Luiz Fernando Pacheco.
According to him, contracts were also renegotiated “in the paper market”, as traders call it, in Paranaguá for several lots for March and May. Prizes have practically doubled in Paranaguá in the last 30 days, going from +35 to +70 over March and June. As a result, prices rose in wheeled ports to R$ 78.63, bringing February's earnings to 2.01% and to R$ 73.69/bag inland, bringing the month's earnings to 1.99%.
FUNDAMENTALS
The imminent and intense rains over the Center of Brazil are reaffirmed in today's climate updates, points out AgResource Consulting: “The rainfall totals intensify to a level between 50-80mm accumulated between February 14th and 19th. Furthermore, this pattern appears to be expanding throughout the South of the country and MATOPIBA, with similar rates”.
“With the exception of Rio Grande do Sul, the vast majority of first-crop soybeans are already in an advanced reproduction or maturation period, and these rains would not have a significant impact on the best production at national level. Already aiming for the second harvest, where planting continues in full swing, soil moisture levels and plant comfort have increased, providing a good start to development. In Argentina, the scenario remains worrying given the lack of rain for at least the next 5 days”, concludes ARC Mercosul.
Source: agrolink | Author: Leonardo Gottems
