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October 31, 2019

Soybean Prices in Brazil Decline 5% over last Two Weeks

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Lower soybean prices on the Chicago Board of Trade along with a stronger exchange rate between the Brazilian real and the U.S. dollar have led to soybean price declines in Brazil. According to the Brazilian consulting firm Brandalizze Consulting as reported in Noticias Agricolas, the slow soybean harvest pace in the U.S. and the irregular rainfall in Brazil have not been enough to encourage higher soybean prices.

In fact, over the last two weeks, the price of soybeans at the Brazilian ports has declined approximately 5%. The price of old crop soybeans at the Brazilian ports hit a high of R$ 92.00 per sack (approximately $10.45 per bushel), but they have since declined to the range of R$ 86 to R$ 87 per sack (approximately $9.77 to $9.88 per bushel). For new crop soybeans that will be harvested starting early next year, the high point for price was R$ 90.00 per sack (approximately $10.22 per bushel), but the price is now down to the range of R$ 84.00 to R$ 85.00 per sack (approximately $9.54 to 9.65 per bushel).

The premium for soybeans at the Brazilian Port of Santos last week averaged US$ 0.94 per bushel over the price at the Chicago Board of Trade.

Lower soybean prices have also been reported in the interior of Brazil. The price of old crop soybeans in the state of Mato Grosso last week averaged R$ 75.04 (approximately $8.52 per bushel) according to the Mato Grosso Institute of Agricultural Economics (Imea).

In contrast, corn prices in the state of Mato Grosso have moved higher in recent weeks due to strong domestic demand for corn from ethanol producers and livestock operations. Imea reported that the price of corn in Mato Grosso increased 11.9% during the month of October to a maximum of R$ 27.90 per sack last week (approximately $3.17 per bushel). Farmers who still had old crop corn to sell took advantage of the improved price to market some of their remaining grain.