Brazil Sells 4 Million Tonnes of Soybeans in a Week as Prices Near Yearly Highs
Brazilian soybean traders sold approximately 4 million tonnes domestically during the week ending July 8, according to Brandalizze Consulting, as Chicago futures held near their strongest levels of the year before easing on Wednesday. Old-crop sales are tracking close to the historical average, while forward sales of the 2026/27 crop lag behind amid rising input-cost concerns tied to surging oil prices.
Brisk Domestic Sales in Brazil
Brazilian soybean traders sold approximately 4 million tonnes domestically this week, through Wednesday, July 8, according to market consultancy Brandalizze Consulting. The pace reflects producers moving to capture prices that traded near their best levels of the year, both at ports and in over-the-counter markets, consultant Vlamir Brandalizze said.
At the port of Paranagua, indicative prices ranged from 143.00 reais per sack for August delivery, payable August 31, to 149.00 reais for November delivery of spot soybeans. For the 2027 crop, prices stood between 138.00 and 139.00 reais per sack. Port references were higher than the previous week, though gains were capped by a firmer Brazilian real and narrower premiums, a typical response to rallies in Chicago.
Chicago Futures Ease After Sharp Weekly Gains
On the Chicago Board of Trade, soybean futures pulled back on Wednesday after a strong run, with prices testing only slight losses as traders took profits. Even so, the week's cumulative gains remained substantial: the July contract rose 5.75% from Thursday, July 2, through Wednesday to reach 11.96 dollars per bushel, having touched 12.00 dollars per bushel intraday. The August contract gained 4.93% to 11.92 dollars, and the November contract advanced 3.84% to 11.91 dollars per bushel.
Victor Martins, soybean analyst and risk manager at Amius, said the market "bought the rumor and sold the fact" as it consolidated ahead of the next USDA report. Soybean meal fell more than 1% on Wednesday, adding pressure to soybean prices, while soybean oil rallied more than 3% in Chicago on the back of surging crude oil prices tied to escalating tensions between Iran and the United States. Brent crude traded in London gained more than 5% after reports that the two countries no longer consider a deal or ceasefire likely.
Old-Crop Sales Pace Steady, New Crop Lags
Brandalizze Consulting estimates Brazil has now sold about 71% of its 2025/26 soybean crop, close to the 71.5% sold at the same point last year and just below the 72% five-year average. Roughly 52 million tonnes remain in producers' hands, compared with just over 48 million tonnes unsold a year earlier.
Forward sales of the incoming 2026/27 crop are running behind: only 23% has been committed, versus 26.5% at the same time last year and a historical average of 27%. Brandalizze noted producers are increasingly turning to barter arrangements to secure inputs for the next season, driven by concern that rising oil prices could push up fertilizer and pesticide costs. He expects this activity to continue in the coming days.
Demand and Weather Support Underlying Prices
Beyond the sell-off in Chicago on Wednesday, market participants continue to cite weather risk in the U.S. Corn Belt during the second half of July and renewed Chinese purchases of U.S. soybeans as key supports for prices. The U.S. Department of Agriculture confirmed a sale of 472,000 tonnes of soybeans to China, a transaction that contributed to earlier gains in Chicago. Wednesday's profit-taking in soybeans coincided with sharper declines in corn and wheat futures at the CBOT.
