Oleochem Analytics — Soybean futures neared a seven-year high as surging demand supported cash markets and attracted speculative buying, analysts said.
Futures posted big advances in soy, gaining on signs of dwindling US stockpiles and due to speculative buying by commodity funds, analysts said.
In addition, tensions in related vegetable oil and biodiesel markets added to strength in soybeans.
Brazil suspended import duties on soy, corn, soybean meal and soybean oil until the end of the year, the Agriculture Ministry said on Monday.
In October 2020, the Brazilian Chamber of Foreign Trade (Camex) authorized the suspension of the import tax for corn until March 31, 2021 and for soybeans, crude oil and flour and pellets until January 15, 2021.
The expectation at that time was that there would be stabilization in global prices and the grain harvest, in 2021 would have sufficient production in order to rebalance the price ratio with animal proteins.
However, international prices showed an upward trend, putting further pressure on domestic Brazilian prices.
Despite the record harvest of 135.5 million tons of soybeans, domestic prices have continued to rise due to the strong external demand and the devaluation of the Brazilian Real against the US dollar.