CEPEA: ESALQ/BM&FBovespa Index for soybeans down 2.9% in first two weeks of March to 60.70 reais/60-kg bag; CEPEA/ESALQ Index for soy down 3.5% during same time period to 57.16 reais/60-kg bag

PIRACICABA, Brazil , March 21, 2013 (press release) – In early March, players in Brazil were facing major difficulties to transport soybean to ports. Lack of trucks, high freights and rains have interrupted the delivery at ports. Therefore, importers have increased purchases from the United States; however, stocks in that country are low, pushing up prices to increase at CME/CBOT.

In Mato Grosso State, particularly in the municipalities of Sinop, Lucas do Rio Verde and Sorriso, besides high freight – roughly 300.00 reais per ton until the Paranaguá port –, poor road conditions aggravate the high movement of trucks. Delays in soybean deliveries to export and to the domestic market have slowed down trades in the spot market.

In February, despite advances of the harvesting, soybean shipments totaled only 959 thousand tons, against 1.56 million in February 2012. The average price was 63.76 reais per 60-kilo bag.

Shipments of soybean meal amounted 669.7 thousand tons in February, for an increase of 8.6% compared to January, but a drop of 32.8% in relation to February 2012. Soy oil exports totaled 26.35 thousand tons, upping 14% comparing to January and a sharp decrease of 71.7% in relation to the same period of the previous year (Secex - Foreign Trade Secretariat - data).

In early March, the harvesting in Brazil neared 60% of the area. In Mato Grosso State, almost 80% of the crops had already been harvested. In Santa Catarina and Rio Grande do Sul States, the harvesting had reached 12%.

The ESALQ/BM&FBovespa Index for the soybean delivered at the Paranaguá port decreased 2.88% in the first fortnight of March, and closed at 60.70 reais or 30.61 dollars per 60-kilo bag on March 15. In the same period, the CEPEA/ESALQ Index for soy (Paraná state – reference for trades in Brazil) dropped 3.51% and closed at 57.16 reais or 28.82 dollars per 60-kilo bag on March 15. (Cepea – Brazil)

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