South America Calling

Brazil's soybean market may have been more active than I reported last week, according to a couple of consultancy surveys.

Forward sales of the 2014-15 soybean crop rose 8 percentage points in October to reach 21% sold, according to research released Monday by AgRural, a local farm consultancy. While the figure remains well behind the 34% registered at the same point last year, the jump represents significant business.

Safras e Mercado, another local consultancy, put sales at a more modest 17% of the forecast 2014-15 crop as of Nov. 3, but that still represents growth from a month before.

Business was best in Mato Grosso, where sales jumped from 18% to 30% in October, said AgRural, with substantial business completed at $18 to $20 per 60-kilogram bag ($8.18 to $9.09 per bushel)

Domestic prices reacted in the second half of October to a meal-driven jump in futures prices, a decline in the Brazilian real and the relevant strength of November export premiums, despite the arrival of the U.S. crop.

It would certainly make sense that sales moved forward as brokers said there was increased farmer interest in late October. Farmers are well capitalized, but they have a lot of soybeans yet to sell.

(AG)

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