Agricultura

Agricultura

Fechar
PUBLICIDADE

Agricultura

Despite higher production, prices set records in 2021

 

Cepea, January 3, 2022 – Although sowing of the 2020/21 soybean crop took place later in Brazil because of the delay in rainfall, the weather favored crops after that, resulting in a record harvest for the second consecutive season, at 137.32 million tons, according to Conab (Brazil’s National Company for Food Supply). Despite the high output, on the average of 2021, prices set records in Brazil, in real terms (values were deflated by the IGP-DI from Nov/21).

 

The 2020/21 season began with the lowest ending stocks of the last seven years (since 2013/14), according to the USDA. Besides, more than half the output from 2021 had been sold in advance, making farmers focused on deliveries and unwilling to close deals in the national spot market.

 

The higher number of contracts closed was allocated to the international market, due to the strong dollar. However, delays in both soybean sowing and harvesting hampered shipment booking and boosted logistic costs in Brazil and abroad. As for prices, the lower volume available in the market added to the higher interest of purchasers boosted soybean prices in April and in May.

 

In June, values weakened, influenced by the US dollar appreciation, the end of the harvesting in Argentina and favorable weather to soybean crops in the United States. This scenario widened the gap between asking and bidding prices, keeping liquidity low in Brazil.

 

However, from June onwards, Brazilian processors began to signal the need of replenishing inventories, increasing the competition with international purchasers. Thus, from August to October, the gap between the averages of the ESALQ/BM&FBovespa Index Paranaguá (PR) and the CEPEA/ESALQ Index Paraná was narrower than 2%, the narrowest in the year. In the last two months of 2021, agents were focused on the soybean crops from the 2021/22 season in South America, while some consumers had already built inventories for that period.

 

In 2021, the averages of these Indexes closed at BRL 175.67/60-kilo bag and at BRL 171.07/bag, 14.8% and 13.75% up, respectively, compared to that in 2020, in real terms.

 

EXPORTS – According to data from Secex, in 2021 (January – December 17th), Brazil exported 83.53 million tons of soybean, a record and 0.67% higher than all the volume shipped in 2020.

 

(Cepea-Brazil)

 

 

PUBLICIDADE

Curiosidades

Mais Lidas em Agricultura

PUBLICIDADE
PUBLICIDADE