Home |  First National Bank Home |  Weather |  Futures |  Market News |  Headline News |  DTN Ag Headlines |  AgBizDir.com |  Portfolio |  Futures Markets 
- DTN Headline News
Brazil Soy Market Perks Up
Tuesday, April 26, 2016 8:35AM CDT

By Alastair Stewart
DTN South America Correspondent

SAO PAULO, Brazil (DTN) -- Brazil's soybean market picked up last week on the major rally in Chicago futures, but players remain cautious amid continued political volatility.

Farmers across southern Brazil sold soybeans last week after local prices jumped.

Soybean hit 83 Brazilian reals per 60-kilogram bag ($15.27 per bushel) at Paranagua port on Wednesday, up from 77 reals the week before and 75 reals a month ago. However, prices subsided on Friday and Monday and business slowed along with it.

While the key southern states of Parana and Rio Grande do Sul witnessed business, Mato Grosso and the rest of the center-west remained fairly slow despite the bump in prices offered by the rain damage to the Argentine crop.

With a good portion of the 2015-16 crop already sold, Brazilian growers are not in a huge hurry to sell their soybeans.

Brazilian farmers had already committed 60% of their 2015-16 soybean harvest for sale at the end of March, ahead of the 53% registered at the same time last year, according to AgRural, a local farm consultancy, and sales will have moved on from there.

Political and economic uncertainty continues to undermine business, though, with everybody reticent about doing deals with prices to be fixed at a future date.

With it looking increasingly likely that President Dilma Rousseff will face impeachment proceedings and be forced to step aside, at least temporarily, investors are looking to the future.

Vice President Michel Temer will take over if the impeachment process starts.

He has promised more market-friendly policies, but it remains unclear whether he will have sufficient support to bring in the changes needed to kick-start the economy.

This uncertainty directly feeds into the grain markets via the exchange rate.

If headway looks like it's being made in bringing Brazil out of its current slump, which will likely see the economy retract a combined 8% in 2015 and 2016, the real will strengthen and trim Brazil's advantage.

However, if the political deadlock continues, then Brazil's economic funk worsens and the real weakens.

The real strengthened from 4.01 reals to the dollar on March 1 to the current level of 3.56 reals to the dollar on the prospect that impeachment would go through.

Alastair Stewart can be reached at astewartbrazil@gmail.com

Follow Alastair Stewart on Twitter @astewartbrazil


blog iconDTN Blogs & Forums
DTN Market Matters Blog
Katie Micik
Markets Editor
Monday, April 25, 2016 1:19PM CDT
Monday, April 18, 2016 2:27PM CDT
Monday, April 11, 2016 2:52PM CDT
Technically Speaking
Darin Newsom
DTN Senior Analyst
Monday, April 25, 2016 7:52AM CDT
Monday, April 25, 2016 7:51AM CDT
Monday, April 25, 2016 7:50AM CDT
Fundamentally Speaking
Joel Karlin
DTN Contributing Analyst
Monday, April 25, 2016 12:38PM CDT
Thursday, April 7, 2016 10:11AM CDT
Wednesday, April 6, 2016 10:13AM CDT
DTN Ag Policy Blog
Chris Clayton
DTN Ag Policy Editor
Wednesday, April 27, 2016 6:48AM CDT
Thursday, April 21, 2016 4:11PM CDT
Tuesday, April 19, 2016 10:22PM CDT
Minding Ag's Business
Marcia Taylor
DTN Executive Editor
Thursday, April 28, 2016 3:53PM CDT
Thursday, April 21, 2016 2:36PM CDT
Wednesday, April 20, 2016 11:17AM CDT
DTN Ag Weather Forum
Bryce Anderson
DTN Ag Meteorologist and DTN Analyst
Thursday, April 28, 2016 4:23PM CDT
Wednesday, April 27, 2016 10:06AM CDT
Tuesday, April 26, 2016 2:06PM CDT
DTN Production Blog
Pam Smith
Crops Technology Editor
Tuesday, April 19, 2016 4:29PM CDT
Monday, April 11, 2016 8:22AM CDT
Thursday, April 7, 2016 10:56AM CDT
Harrington's Sort & Cull
John Harrington
DTN Livestock Analyst
Friday, April 22, 2016 12:16PM CDT
Friday, April 15, 2016 10:34AM CDT
Monday, March 28, 2016 5:13PM CDT
South America Calling
Alastair Stewart
South America Correspondent
Thursday, April 28, 2016 4:18PM CDT
Tuesday, April 26, 2016 6:59AM CDT
Wednesday, April 20, 2016 9:38AM CDT
An Urban’s Rural View
Urban Lehner
Editor Emeritus
Friday, April 22, 2016 4:44PM CDT
Friday, April 15, 2016 6:22AM CDT
Friday, April 8, 2016 6:35AM CDT
Machinery Chatter
Jim Patrico
Progressive Farmer Senior Editor
Wednesday, April 27, 2016 1:49PM CDT
Wednesday, April 20, 2016 9:25AM CDT
Tuesday, April 12, 2016 1:39PM CDT
Canadian Markets
Cliff Jamieson
Canadian Grains Analyst
Wednesday, April 27, 2016 4:18PM CDT
Tuesday, April 26, 2016 4:26PM CDT
Monday, April 25, 2016 5:26PM CDT
Editor’s Notebook
Greg D. Horstmeier
DTN Editor-in-Chief
Monday, April 25, 2016 3:10PM CDT
Thursday, April 14, 2016 6:55AM CDT
Monday, April 11, 2016 7:00AM CDT
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN