Cepea, November 17, 2023 – Liquidity increased in the soybean market in mid-November, a result of the higher international demand, especially from China, since it has been increasing the soybean crushing volume. In Brazil, the industry was also willing to trade in the spot market because of the firm demand for soybean meal and soybean oil. Therefore, soy prices moved up.
Between Oct. 31st and November 16th, the ESALQ/BM&FBovespa soybean Index (Paranaguá) and the CEPEA/ESALQ Index (Paraná) increased 1.45% and 0.88%, respectively, to BRL 144.59 per 60-kg bag (USD 29.70)/bag and BRL 138.74 (USD 28.50)/bag on November 16th.
Besides the higher demand, price rises were also related to the irregular volume of rainfall in Brazil, which has been concerning players. In the Central-West, high temperatures and low soil moist led some growers to replant.
CROPS – Conab released a report on Nov. 9 indicating an increase of the soybean production in 2023/24. It is projected at the record of 162.42 million tons, 5% more than in 2022/23. The increase is related to the higher planted area.
Conab also says that the soybean sowing reached 48.4% in Brazil up to Nov. 4, below the 57.5% planted a year ago.
The USDA forecasts the 2023/24 global supply at the record of 400.42 million tons. For Brazil, the Department indicates a production of 163 million tons.