December 03, 2003

Brazilian Soybean Market Running At Pace Similar to Year-End
 

The Brazilian soybean market is already running at a pace similar to year-end.

That's when processors close for preventive maintenance and supplies of beans are adequate. Last week, local bean prices at main markets, as researched by Celeres, fell 3.6%. In the last 30 days the average price, in local currency, fell 7.7%.

Lower prices at the CBOT helped push these prices down, but mostly a calm balance of supply and demand in Brazil is reflected in the lower values. Activity at soybean processors, which is slow now, only tends to decrease as more local facilities suspend operations for traditional year-end maintenance.

New crop is faring no better. There is practically no new forward business. Local producers are not interested in selling at these lower prices. From the buyers' point of view, they have already purchased enough that they can safely await a better definition of the Brazilian harvest.