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
