Brazil soy paper premiums return above $1/bu as farmers back off

Premiums in the Paper Paranagua market have returned above 100 cents per bushel over May futures for May loading, as farmers have backed away, sources at two brokers said Wednesday.

Bids for paper for May were heard late Tuesday at 102 cents over May futures versus offers at 105 cents over May, the highest premiums so far this year.

"Sellers are backing away and waiting for higher bids," said one broker.

With cargoes loading out of Santos said to be valued at a 10-12 cent premium over the Paper Paranagua market, FOB cargoes were back above 110 cents over May, equating to $414/mt at time of press.

The move in premiums has offset a decline in futures prices, which moved lower in anticipation of greater plantings of soybeans in the US during the 2018/19 campaign.