The drop in the price of soybeans on the world market, recorded in October 2023, largely caused by the fall of the dollar in the Brazilian export market, accentuates the need for the sector to build alternative paths and tokenization in agribusiness is a great alternative.

Several factors contribute to the fall of soybean prices. The drop in the price of soybean futures contracts on the Chicago Stock Exchange is one of the main ones, as it reflects the competitiveness of that country’s crop.

The increase in the forecast for the 2023/2024 harvest, made by the US Department of Agriculture, is an indication of an increasing supply of soybeans, which tends to put downward pressure on prices.

How can agricultural companies deal with scenarios like this when there are no outlets for greater export revenues in the short and medium term?

BLOCKBR, a company that develops tokenization infrastructure, will show how the soybean scenario is in Brazil and how the token’s technological revolution can help!

WHAT FACTORS LEAD TO THE FALL IN THE PRICE OF SOYBEANS

Some factors strongly impact the price of the commodity.

EXCESSIVE SOY SUPPLY

Brazil is the largest producer and exporter of soybeans in the world, with crops recognized for their high quality. If these factors open major doors in the international soybean market, the performance of the crops generates a volume that does not find rapid demand.

If we combine this with the harvests of other major world exporters – the United States, Argentina, China, India and Paraguay – it is inevitable that prices will fall until demand grows.

EXPORT FREIGHT WITH OTHER CROP

Large volumes of soybean trading simultaneously with the large sugar harvest and the first corn harvest of the year increase freight prices, increasing export costs. With no room to negotiate on transportation, buyers put pressure back on the price of the product.

NEGATIVE PREMIUMS IN PORTO

The buyer of Brazilian soy wants to pay less than he would for American soy due to the large harvest in Brazil, the harvest in progress and the quantity of soy still to be sold.

REAL VALUATION

As it is a commodity priced in dollars, when the dollar falls, the price of soybeans also falls in real.

SOYBEAN PRICE WILL STOP FALLING. BUT WHEN?

Despite the scenario of a decline in the price of soybeans on the international market, there is no prospect that this behavior will last long. But how long will the price of the main commodity in the Brazilian trade balance continue to fall?

Soybean producers continue to negotiate crops at lower prices to pay the costs of the previous harvest, which despite being a record – 154 million tons, 23% higher than in 2021/2022 – suffered financially from input costs, especially fertilizers. .

The behavior of each of the factors that impact the price of soybeans is still uncertain, which is why it is essential that agricultural companies look for alternatives for generating capital and reducing costs that increase operational efficiency and competitiveness for new crops.

Tokenizing agriculture is an excellent way.

OPPORTUNITIES WITH TOKENIZATION IN AGRIBUSINESS

Tokenizing agricultural activity provides solutions that can alleviate many of the challenges facing the agricultural sector.

FRACTIONATION OF PROPERTIES

The tokenization of assets makes it possible to fractionate agricultural land and pastures and offer them as an investment, without transferring ownership, but which allows many people to make a profit from agribusiness without giving up a lot of capital.

It is an effective and safe way of raising funds, which avoids debt and pays remunerations above most traditional financial assets and below the financial cost of loans.

PROJECT TOKENIZATION

A new work unit in agribusiness has a high cost, despite the high probability of success. Here the token works like a share offering: the project will be distributed in shares and will attract investors interested in such a profitable sector.

The agility and high-level security of blockchain technology guarantee the effectiveness and greater liquidity of the project in tokens, in addition to the traceability and transparency of operations.

It is a scenario that conveys confidence to investors and the image of a company aligned with the best that technology provides for business.

TOKENIZATION OF CHAINS AND OPERATIONS

Security, traceability and transparency go far beyond business tokenization; Managing agricultural production chains with more efficiency and agility is a reality and smart contracts play a fundamental role in this scenario.

It is the digital document hosted on the blockchain that contains all the conditions that operations and production chains need to function as electronically as possible and reduce and even eliminate failures, delays and rework.

REACH OF NATIONAL AND INTERNATIONAL MARKETS

As it is a decentralized business model, without operational control from banks or agencies and because it operates uninterruptedly, tokenization facilitates attracting investors in regions where there are logistical and cost difficulties, expanding reach and enhancing opportunities and profits.

DISCOVER BLOCKBR’S TOKENIZATION INFRASTRUCTURE

BLOCKBR has expertise and qualifications in the most different tokenization projects and agribusiness is one of our main markets, due to its importance and the potential of tokens to leverage value and competitiveness.

To achieve this, the tokenization infrastructure will be an important differentiator for each company:

• Build the best technical offering environment;
• Provide experienced and qualified market consultancy;
• Guide towards the most accessible offer with analyzes and studies;
• Ensure token legal compliance.

Do you know what tokenization infrastructure is and how it is fundamental for business with transactional tokens? Find out more with BLOCKCBR!

TOKENIZE YOUR ASSETS WITH BLOCKBR!

Tokenization is an increasingly present reality in market segments and business models and is not something so innovative that it should be viewed with suspicion.

Companies and individuals are currently monetizing tokens.

Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will increase the credibility of the technology for investing in digital assets.

Offering your business token is simpler than you think and you don’t want to see your competitor get ahead to earn more. Or do you want to?

Come and talk to BLOCKBR.

We have the best token offering strategy on the market!

INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!

Buying a token is simple if you have a partnership that makes everything simple like BLOCKBR! We are an experienced asset tokenization company qualified to advise on how to acquire investment tokens safely and with great results.

Open an account on our token marketplace and you will have access to a diverse universe of offers for real estate tokens and other real and financial assets that suit all investor profiles.

Our platform is simple and direct in its information. Everything so you can start investing in tokens from 50 reais!

Come to BLOCKBR, enhance your investor results and get closer to realizing your dreams!

BLOCKBR Digital Assets is a fintech specialized in tokenization of assets and investments that delivers infrastructure to the regulated and non-regulated market through an All-In-One platform that offers the transformation and interoperability between assets and investors.

For more information, visit: http://www.blockbr.com.br or @blockbr_ on social media.