Soybeans advance in Brazil with support from premiums and advance sales

In August, the international soybean market fell again in Chicago, dropping 0.8% to average prices of US$$ 10.05/bu, according to a survey by Itaú BBA Agro. The pressure stemmed from the lack of Chinese purchases in the United States and the decline in soybean oil, which lost nearly 4% during the period. Even so, longer-term contracts performed differently: March ended the month up 2%, trading near US$$ 10.9/bu.

In Brazil, the dynamics were reversed. The appreciation of export premiums offset the decline on the Chicago Board of Trade and the falling exchange rate, boosting domestic prices. In Paranaguá, soybeans rose 2.6%, closing at R$ 140/bag, while in Sorriso, Mato Grosso, the advance was 5.5%, to R$ 119/bag. The premium in Paranaguá reached US$$ 1.48/bu, above the five-year average for August (US$$ 1.30/bu), supported primarily by Chinese demand.

According to Itaú BBA Agro, the rise in premiums also favored pricing for the new season. Reference contracts for the 2025/26 harvest advanced in August: January (+0.7%), March (+0.8%), and July (+0.8%). This movement brought producers into the market and accelerated future sales. It is estimated that approximately 20% of the projected production for the next harvest has already been negotiated—approximately 36 million tons, considering the projected 175 million tons.

The sales pace, however, is still below that recorded in the same period in 2024, when 25% of the harvest had already been sold.