October 26, 2022

Lower foreign demand induces drop in Brazil's soybean prices in early October

Soybean prices have been falling sharply in Brazil in early October, influenced mainly by lower foreign demand.

Brazil's exports in 2022 are also the lowest in three years.

Researchers at Cepea emphasised that the downward movement of prices has been reinforced by the devaluation of the dollar against the Brazil's real, the estimates indicating record production in Brazil and the advancement of the harvest in the United States.

Still, many sellers sought to liquidate part of the remaining crop 2021/22.

On the export side, data from Secex indicate that in September, 4.29 million tonnes of soybeans were sold, 27.8% less than in August and 11% below the September 2021 volume.

From January to September of this year, 70.76 million tonnes of grain left Brazilian ports, the lowest volume since 2019, considering the first nine months of the year.

According to Cepea researchers, the drop in Brazilian exports is mainly due to lower demand from China.

- CEPEA (Brazil)