Management Report 2020
Management Report 2020
SLC Agrícola
In a year marked by lower prices and a subsequent recovery in soy com-
plex prices in Chicago, the prices of soybeans and meal ended the period
from January 2020 to January 2021 up over 45%, while oil prices gained
around 30%.
The resumption of imports by China driven by the country's domestic
demand has been the main factor sustaining prices. This change is es-
pecially important after the past cycle marked by the U.S.-China trade
war and by African Swine Flu, which contributed to the scenario of de-
pressed prices for the commodity in international markets.
The resumption of U.S. soybean purchases by China at volumes above
those observed in recent years, based on historical data, also was an
important factor in the global commodity market sustaining prices in
Chicago.
In Brazil, soybean exports in 2020 maintained their upward trend ob-
served in recent periods, with shipments of 82.9 million tons in the pe-
riod, consolidating the country's position as an important soybean sup-
plier in the international market.
The global supply-demand balance for the current cycle (2020/21)
should register a deficit for the second straight year, with consumption
expected to outpace production by approximately 8.8 million tons, com-
pared to the shortfall of 18.1 million tons in 2019/20.
Figure 12
Prices of soy complex in Chicago, Jan/20 to Jan/21
160
150
140
130
120
110
100
90
80
70
60
Jan -20 Mar 20 May-20 Jul-20
■Soybean ■Soybean meal
Source: Bloomberg. Base 100.
Sep-20
Nov-20
Soybean oil
Jan-21
Figure 13
Million tons
U.S. soybean shipments to China
(annual volume committed in last week
of January of each year)
33.3
28.2
25.2
26.2
34.7
12.0
3.5
2015
2016 2017 2018
2019 2020 2021
Source: USDA
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