Dollar's rise and external demand drive up soybean prices in Brazil

Soybean prices rose on national and international markets over the last week.

According to researchers at Cepea, in Brazil, the rise in values was intensified by the significant appreciation of the dollar against the Real – the US currency was traded above R$ 6.00 last week.

The pace of business in the domestic spot market, however, was limited by strong exchange rate fluctuations, which left some agents more cautious and waiting for better opportunities. The domestic sector remains very attentive to the external context.

On April 9, the United States government suspended reciprocal tariffs on several countries (including Brazil) for 90 days, with the exception of China.

Cepea researchers indicate that, on the one hand, this scenario brought some relief to the market and boosted international transactions, but, on the other hand, it intensified the trade war with China, which, in turn, should seek to intensify imports from other countries, such as Brazil – it is worth remembering that China is already the main destination for Brazilian soybeans.