Soybean prices falling: global supply pressures markets

Downtrend is driven by the estimated recovery in production in South American countries for the 2023/2024 harvest, with emphasis on Argentina – Photo: Disclosure

In the last year, soybeans have faced pressure due to abundant supply on the world stage. According to the Mato-Grossense Institute of Agricultural Economics (Imea), last week, the price of soybeans for the current contract in Chicago ended with an average of US$ 26.43/sc, marking a drop of 18.43% compared to the same period of the previous year.

This downward trend is driven by the estimated recovery in production in South American countries for the 2023/2024 harvest, with emphasis on Argentina. As a result, the pressure on international prices directly affects the Brazilian and Mato Grosso markets. Last week, the value of available soybeans reached averages of US$ 24.60/sc and US$ 20.86/sc, respectively. Both averages represent significant devaluations of 16.39% and 20.21% compared to the previous year.

Furthermore, the premiums charged have remained negative, further intensifying the pressure on soybean prices. Despite the price of the national oilseed being more competitive on the foreign market compared to the United States, producers have shown reluctance to carry out major negotiations, due to the values ​​offered, which have been discouraging.