Weather in the United States and high stocks are driving down soybean prices abroad

External soybean prices fell last week, pressured by favorable weather conditions for soybean crops in the United States and high stocks in Brazil and Argentina, according to Cepea researchers.

According to the Research Center, the international devaluation was also intensified by the – reciprocal – tariffs imposed by the US government on several countries, including Brazil, which come into effect on August 1st.

In the domestic market, the downward movement seen at the beginning of last week has been halted. This is because, as Cepea researchers explain, trade tensions between the United States and grain-importing countries and the appreciation of the dollar against the real are likely to redirect demand for North American soybeans to Brazil.