Does a pronoun usually refer to the nearest preceding person(s)?

See the following paragraph:

Then Judah said to his brothers, “What profit is it if we kill our brother and conceal his blood? Come, let us sell him to the Ishmaelites, and let not our hand be upon him, for he is our brother, our own flesh.” And his brothers listened to him. Then Midianite traders passed by. And they drew Joseph up and lifted him out of the pit, and sold him to the Ishmaelites for twenty shekels of silver. They took Joseph to Egypt.

Here I am asking about the pronoun "they" in the sentences *Then Midianite traders passed by. And they drew Joseph up and lifted him out of the pit, and sold him to the Ishmaelites for twenty shekels of silver.
*

Does "they" refer to "some Midianite traders" as those are the nearest preceding persons?