Soybeans rise in Brazil in July despite international decline

The global soybean market ended July in mixed directions. While prices on the Chicago Board of Trade (CBOT) fell 3.61 trillion pounds to close at USD 10.14 per bushel, prices in Brazil rose, supported by stronger export premiums, according to data from Itaú BBA Agro.

The movement in Chicago reflected the good weather conditions in the United States, which have been favoring crop development, and the lack of progress in trade negotiations between Washington and Beijing. Without Chinese demand for American soybeans, the pace of U.S. exports remained slow, increasing downward pressure on prices.

Domestic market reacts

In Brazil, the situation was different. In Paranaguá, Paraná, the 60-kg bag closed July at R$ 137, up 1.8%. In Sorriso, Mato Grosso, the price appreciated 2.4%, to R$ 113/bag. The difference was due to the sharp rise in premiums, which averaged US$ 1.25/bu at the Paraná port, compared to just US$ 0.42/bu in July 2024. This movement not only offset the impact of the external decline but also guaranteed gains for Brazilian producers.

Exports continue at a strong pace

Soybean exports totaled 12.3 million tons in July, a decrease of 9% compared to June, but 9% above the same month in 2024. From January to July, shipments totaled 77.2 million tons, a historical record for the period and 2.4% above that recorded last year.

China remains the main destination for Brazilian oilseeds. Between January and July, the country absorbed 75% of exports, above the 73% share recorded in 2024. The lack of Chinese purchases of American soybeans to date partly explains this increase in share, reinforcing Brazil's leading role in supplying the world's largest consumer.