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Veteran Advisor

Brazil Soybeans Roll Down The River

Remember the CCR song, Proud Mary with the lyrics "...Rolling down the river, rollin, rollin, doo, doo, doo...."

 

My Brazilian contact at the Port of Paranagua says the Brazilian soybeans are rolling down the river at high levels. He filed this report, yesterday. 

 

BRAZIL EXPORT 1st QUARTER

With the favorable exchange rate, in the first quarter of 2020 Brazil exported 13.5% more soybeans than the first quarter of 2019. There were 17.91 million tons this year against 15.7 million tons last year. Corn shipments fell by half. From 6.26 million tons in the first quarter of 2019 to 3.02 million tons in 2020.

 

PARANAGUA PORT

In Jan / Mar accumulated, Paranagua Port loaded 25% more soy, from 2.8 million tons to 3.55 million tons. And 55% less corn, from 591.5 thousand to 297.8 thousand tons. Additional soy volume makes up for the setback in corn.

Market Wrap From Friday:

SOY

Chicago ends the week at US$ 8.53 / bushel

Dollar closes the week in Brazil at R$ 5.32

Bag price reaches potential of R$ 100

 

CORN

Chicago ends the week at US$ 3.30 / bushel

Dollar closes the week in Brazil at R$ 5.32

Bag price reaches potential of R$ 41.47

 

Notes:

* Soy and corn start April and end the week down at CBOT

* Potential quotation is conversion Dollar / bushel into Reais / bag (exchange rate of the day)

* INTL quotes remain flat. Exchange rate is the main variable in Brazil

* Sales opportunity. It remains to be seen whether the market is a buyer

 

 

What say you?

 

Mike

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Senior Advisor

Re:Yeah, and the Port of Paranagua is only....

Yeah, and keep in mind the Port of Paranagua is only about half the size of the Port of Santos.  At any given moment there might be 20 ships waiting to load outside the Port of Paranagua but 40-50 outside the Port of Santos.  I bet Santos can load more ships faster than New Orleans and Columbia River combined.

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