Soybean oil prices have increased in the Brazilian market, influenced by the higher demand, especially from the food industry. Players are trying to guarantee having the product for the mid-term, since there are expectations of an increase in the biodiesel production in Brazil. It is worth noting that the soybean oil is the major raw material to produce biodiesel in Brazil, accounting for roughly 70%.
The biodiesel mixed into diesel oil is currently at 14% in Brazil, but it can increase to 25%.
The value of soy oil rose 0.9% between March 21 and 27, at 5,192.41 BRL per ton (in São Paulo city with 12% ICMS) on March 27. The average in the partial of this month is at BRL 5.093,03/ton, for an increase of 6.2% in relation to that in February, but downing 16.8% compared to February/23.
Soybean meal prices, in turn, are moving down. In order to meet the demand for oil, the volume of soybeans crushed may increase, resulting in a surplus of soybean meal. Moreover, the supply recovery in Argentina can limit Brazilian exports of this byproduct. In the domestic market, consumers have been buying only small amounts of soybean meal, expecting better opportunities to trade in the next weeks.
On the average of the regions surveyed by Cepea, soymeal prices dropped 1.4% in the last seven days and 5.2% comparing February and March.
SOYBEAN – Quotations are practically stable this week, due to differences between prices to sell and to purchase. Producers are away from closing trades, expecting rises in the coming weeks, while purchasers buy only to meet immediate needs, due to the possible higher supply in global terms.
From March 21-27, the ESALQ/BM&FBovespa Index (Paranaguá) decreased 0.8%, closing at BRL 123.75 per 60-kg bag on March 27. The CEPEA/ESALQ Index (Paraná) dropped 0.2%, to close at BRL 120.13 per 60-kg bag. On the average of the regions surveyed by Cepea, soybean prices upped 0.3% in the over-the-counter market (paid to farmers) and 0.2% in the wholesale market (deals between processors).
HARVEST – The soy harvest advanced over the last days, but activities may be interrupted, since there is a rain forecast in several Brazilian regions. Conab indicates that 66.3% of the national area had been harvested up to March 24, against 69.1% one year ago.