Despite higher CBOT futures prices, Brazilian soybean farmgate prices decreased by 3.5% in June compared to the previous month. Stronger BRL and lower soybean premiums have offset higher CBOT futures.
The corn farmgate price was down 14.2% in June versus the previous month. The higher expectations on the total corn crop and the beginning of harvest have reduced price levels in local markets.
In May 2023, Brazilian soybean exports reached 15.6m metric tons, 46% ahead of May 2022. Year-to-date, soybean exports are 9% ahead of last season’s pace.
In May 2023, corn exports were 0.4m metric tons, down 65% from last May. Year-to-date, corn exports have reached 10.6m metric tons, an all-time record.
The ‘safrinha’ corn crop is in very good condition. Despite the delay in safrinha planting, Rabobank expects total corn crop will reach a record production of 129m metric tons. This is a 14m metric ton increase over last year’s crop.