Commercialisation of Brazil's new soyabean crop has been slow and should continue to be so at least until January, as lower prices keep producers away from the market, Algar Agro trading company head Murilo Braz Sant'Anna said on Wednesday.
The recent strengthening of the Brazilian real against the US dollar is also making farmers reluctant to sell their crops in the forward markets, while trading companies are looking to preserve their margins after strong competition this year hurt profitability, he said. "The sense of responsibility within the companies indicates we are not going to see the blood bath next year that we saw this year," said Sant'Anna, referring to fierce competition for the oilseed among commodities traders.
"New entrants paid any price aiming to make volume and position themselves in the market. In the end we saw very negative results," he said. Soy prices in Parana state, according to the Cepea/Esalq index, fell to 74 reais per bag (60 kg) on Tuesday from 79 reais per bag (60 kg) a year ago.