External Valuation Reflects in Brazilian Soybean Prices
Recent surveys by Cepea show that soybean prices are firmer in the Brazilian market, supported by external appreciation. The averages for April (up to the 25th) of the ESALQ/BM&FBovespa - Paranaguá and CEPEA/ESALQ - Paraná Indicators are respectively 2.2% and 2.9% higher than those of March and are already the highest since January/24 - during that period, concerns about the weather over South American crops boosted internal values.
Regarding the soybean harvest in Brazil, Cepea's monitoring indicates that activities are nearing the final stretch. According to Conab, 86.8% of the cultivated area had been harvested by April 21, a weekly increase of 3.6 percentage points, but below the 89% from a year ago. This slower pace of fieldwork is due to precipitation in the Southern region of the country and in part of the Northeast, as analyzed by Cepea researchers.
The firmness in Brazilian soybean prices is also reflected in the performance of the Chicago Board of Trade, where soybean prices rose in the early hours of Monday morning (29). This favorable scenario is encouraging for Brazilian producers as they approach the end of the harvest season, with hopes of maintaining stability and profitability in the market.
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