June 17, 2014
Brazil's soy prices decline in June 2014
Soybean prices in Brazil have been falling in June 2014, due to an underperforming international market and the dollar devaluation against the Real currency.
The slow pace of Brazilian exports and the possibility that this development could stay for a while have been reinforcing the domestic downward trend. In the international market, favourable weather condition in the US which should produce a record crop, is pressing down soy values.
In the first week of June, Brazilian soy exports were 1.6 million tonnes, while the daily average is 317.8 thousand tonnes. Still, the daily average is lower than what's observed in May and June 2013.
Concerning Brazil, the USDA data indicates that the 2013/12 season might be 87.5 million tonnes, a slightly higher figure than a Conab forecast.
Data released by Conab on June 10 indicates that Brazilian soybean production should be a record 86.05 million tonnes in the 2013/14 season. The volume is 0.6% lower than a previous data released on May, due to low production in São Paulo and Goias which have been affected by unfavourable weather conditions.
The ESALQ/BM&FBovespa Index for soy delivered at Paranaguá has dropped 0.81% in June, closing at US$31.76 per 60-kg bag on June 13.
The CEPEA/ESALQ Index for soy averaged US$29.97 per 60-kg bag on June 13, with a decrease of 2.4%.