“We are facing a new phase of agribusiness, where the use of digital tools has become inevitable for farmers…”
Gabriel Souza is the market intelligence leader at Grão Direto, and an agronomist from the State University of São Paulo.
Grão Direto is a digital commercialization platform that connects grain buyers and sellers.
Gabriel Souza, market intelligence leader at Grão Direto
AgriBrasilis – What changed in the sales of grains with the emergence of digital platforms?
Gabriel Souza – We are facing a new phase of agribusiness, where the use of digital tools has become inevitable for farmers. This is especially the case for those who want to close their deals in the grain market while saving time, and being more efficient and secure. Technology helps farmers and companies to have a higher quality information and, consequently, this converts into more profit and/or business.
AgriBrasilis – How are these platforms evolving?
Gabriel Souza – The accelerated and significant growth in the volume of operations is directly related to the expansion movement that the platforms are promoting. They are inaugurating, for example, marketplaces in new States, democratizing access to relevant market information and enhancing grain negotiations in the Brazil.
AgriBrasilis – In January, Grão Direto claimed that soybean prices would be affected by 3 factors: Chinese imports, Argentina’s performance, and the drop in productivity in the State of Mato Grosso. What has changed since then? How should the market behave in the short and medium term?
Gabriel Souza – The 2023/24 season presented challenges in pricing due to several factors. Despite expectations of stabilization of soybean prices during the development of crops in Brazil, which had their yields compromised in several regions due to the drought, prices in Chicago fell and the stabilized dollar resulted in unattractive values for farmers in the first months of 2024, with hopes of an improvement in prices in the short term.
In March, buyers intensified their actions and, in April, premiums became positive, generating good trading opportunities.
In May, floods in the State of Rio Grande do Sul impacted soybean and corn prices due to estimated losses in the affected areas and logistical problems in storing and transporting production.
In June, the appreciation of the Dollar (in relation to Real) heated up the market for buyers and offered good business opportunities for sellers, and a good volume of soybean negotiations for 2025 was observed during this period.
Currently, soybeans in Chicago are close to a support region (US$10.50/bushel), a level las seen in October/November of 2020. This could be a good opportunity for buyers to intensify their purchases and, therefore, we might confirm technical support.
AgriBrasilis – How have fluctuations in the dollar exchange rate affected the grain market?
Gabriel Souza – Dollar fluctuations directly impact grain pricing and buyers’ demand. With the American currency having more power in relation to the Brazilian Real, buyers are able to purchase grains at a more attractive price when converted into dollars, increasing their market share. This creates opportunities for sellers to liquidate part of their production at prices that are attractive to both parties.
AgriBrasilis – How have low global demand and large carryover stocks affected the grain market?
Gabriel Souza – Low demand combined with high carryover stocks creates a challenging environment in the grains market. The consequences affect both parties involved in the commercialization, putting pressure on prices, reducing profitability and generating logistical complications. Buyers and sellers need to adapt to the scenario and prepare for various possible developments until a recovery in global demand occurs.
AgriBrasilis – Why is the future demand for grains considered uncertain?
Gabriel Souza – Current grain prices compromise the viability of production, which could result in a reduction in cultivated areas in the next seasons and in low investments by farmers in infrastructure improvements, new technologies and replacement of implements. This situation can lead to fluctuations in the harvested amounts. With uncertainty in demand, price volatility may increase, raising doubts about the stability of supply and demand in the market.
AgriBrasilis – What changed for Grão Direto after BASF joined as a partner?
Gabriel Souza – The partnership between BASF and Grão Direto strengthens the startup as the main digital grain sales platform on the market, integrating it into BASF’s Conecta.ag ecosystem and expanding its service portfolio, especially for soybean and corn.
The direct and real-time connection between buyers and sellers facilitates new financial and logistical businesses, boosting the adoption of digital technologies in Brazilian agribusiness. Grão Direto’s long-term vision as a neutral platform open to all market players is reinforced by this direct and real-time connection.