Hurricane Ida in the US raises soybean prices in Brazil

With the passage of hurricane Ida in the US and the resulting serious damage to port facilities in the main export channel for American grains in the Gulf of Mexico, Brazilian soybean prices skyrocketed.

According to a survey by T&F consultancy, at the port of Paranaguá (PR) prices rose 228.7%, from US$ 0.73 per bushel on August 23 (the arrival date of the hurricane) to US$ 2.40 per bushel on September 17th. At the port of Rio Grande (RS), the increase was US$ 0.18 bushel, to US$ 1.93 – an increase of 972%. And, in Santos (SP), where the value was also at US$ 0.18 per bushel, on Friday it was US$ 2.45 per bushel (an increase of 1211%).

With US demand falling to zero at the port of New Orleans, Chicago prices also retreated and the rise in premiums at Brazilian ports only offset this fall, without significantly improving the prices received by Brazilian sellers, says analyst Luiz Pacheco, from T&F.

The problem, according to him, is that a large part of the volume that is now being negotiated in Brazil for export would go to internal crushing, as had been happening. “With less availability, the industry had to reduce the production of bran and, consequently, the price should rise,” he says.

Source: Valor Econômico

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https://valor.globo.com/agronegocios/noticia/2021/09/20/passagem-do-furacao-ida-nos-eua-eleva-premios-da-soja-no-brasil.ghtml

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