March 12, 2014
Brazil''s February soy pricesreach highestrecord in 10 years
Brazil''s quotes for soy and soymeal continue to move up significantly in both the domestic and international markets despite the good soy crop observed in 2013 and perspectives of record supply the South Americaduring thefirst semester.
Recently, soyoil prices rise, pushing up grains quotes. In Brazil, in spite of harvesting advances, the demand continues high and prices, increasing. In this scenario, the CEPEA/ESALQ Index for soy (Paraná state – reference for trades in Brazil) averaged BRL66.87 (US$28) per 60kg bag in February. It is 0.8% smaller than the January 2014 average, but it is still a record, in nominal terms, considering February. In real terms (IGP-DI January 2014 – Brazil), the February average is the highest for the period since 2004.
The current scenario shows low stocks in the US, smaller Brazilian production compared to that expected initially and firm international demand. These aspects result in higher prices and smaller sales, given that the producer prefers to hold the product, expecting even higher values.
The ESALQ/BM&FBovespa Index for the soy delivered at the Paranaguá port moved up 8% in February. The monthly average was BRL69.86 (US$30) per bag, 9.1% more than that in February 2013.
In February, Brazil exported 2.78 million tonnes of soygrain, against 959,630 tonnes in February 2013, according to Brazilian Foreign Trade Secretariat Secex. As for by-products shipments, the volume reduced in the same period, since it is more attractive to trade the grain.