Strong Demand Boosts Crop Prices
May 24, 2010
Internal prices are a little better now due to currency situation. Although CBOT is falling down, the real value is dropping stronger so prices in our currency are much better. Also in the major regions soybeans are by the bottom of silos, so there is a premium for available product due to trader’s competition.
Farm prices are now about R$30,00/bag in MT (U$7,16/bu) and R$32,00/bag (U$8,16/bu) in North region. I can see many producers coming up to sell some of their carrying positions.
As we have a record crop, and even world economy passing through a risk aversion – again – I can only believe the demand is really strong, to explain prices keep increasingly besides all the situation.
How farmers in the U.S. reacting to current prices for soybean and corn? Will current prices affect the offer for 2010 crop so far?