U.S. reduced less than expected soybean harvests in Argentina and Brazil and price rises
RIO DE JANEIRO, BRAZIL – In the midst of the tension in the market due to the impact of the drought in Argentina, as well as in Brazil, for example, where apart from the lack of rainfall, there are now rains that complicate the soybean harvest in some critical regions, the United States Department of Agriculture (USDA) released today a new production report that reduced less than expected harvests.
At the moment, soybeans on the Chicago Board of Trade gained US$10.20 and are trading at US$586.71 per ton.
According to a report from Granar brokerage from the USDA, Argentina’s soybean 2021/2022 production was recalled from 46.50 to 45 million tons. It is worth remembering that the Rosario Stock Exchange expects 40 million tons of soybean crop, versus 45 million that it initially expected. In comparison, the Buenos Aires Grain Exchange shortened from 44 to 42 million tons its forecast.
“As for exports, bean exports were adjusted from 4.85 to 3.75 million, meal exports from 28.80 to 28 million, and oil exports from 5.90 to 5.80 million,” the brokerage said.
As for Brazil, he pointed out that the USDA lowered the oilseed crop estimate from 139 to 134 million tons. Exports were adjusted from 94 to 90.50 million.
Regarding the United States, among other data, ending stocks were adjusted from 9.52 to 8.84 million tons. This is less than the 8.44 million expected by traders.
“The adjustments made on soybean and corn volumes in Brazil and Argentina were lower than expected by traders, as was the revision on ending stocks in the U.S. However, the fact that the weather continues to complicate the development of soybean and corn in Argentina and that rains are restricting soybean harvesting in central-west Brazil support the firmness of prices of both grains in Chicago,” the brokerage said.
A noteworthy fact in soybeans is that China’s estimate of global imports, the largest buyer, was reduced. The USDA reduced them by three million tons, from 100 to 97 million tons.
Corn
On the other hand, in corn, “Brazil’s harvest was cut from 115 to 114 million tons, but its exports were sustained at 43 million.”
“Argentina’s production was maintained at 54 million tons and its exports at 39 million tons,” Granar said.
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