Brazil soybean meal prices post sharpest daily drop since April after presidential election

Brazilian soybean meal export prices posted their steepest daily decline since mid-April on Oct. 26 and fell to their lowest level since late August, as domestic markets were rattled by the surprise reelection of President Luiz Inácio Lula da Silva.

Platts, part of S&P Global Energy, assessed FOB Paranaguá soybean meal for December shipment at $384.92/metric ton on Oct. 26, down $14.22/mt day over day, the largest daily decline since prices fell $24.58/mt on April 16, when ample supplies in both Brazil and Argentina weighed on the broader market.

The decline pushed spot FOB Paranaguá soybean meal prices to their lowest level since Aug. 24, according to Platts data.

The move followed the market reaction to Lula’s reelection in the Oct. 25 presidential vote. Amid uncertainty over the direction of Brazil’s fiscal policy, the US dollar surged more than 10% against the Brazilian real during Oct. 26 trading, supporting domestic soybean origination while also weighing on Chicago Board of Trade futures, which fell nearly 2%.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →