The March oilseed contract rises 2% to $597.72 a ton, new high in several months.
The reasons for the rise lie in the cuts in production estimates for South America made by the USDA, added to the inclement weather that makes harvesting difficult in Brazil and continues to impact Argentine crops.
The US dependency cut the threshing forecast in Brazil compared to last month by 5 million tons to 134 million tons, while it reduced that of Argentina by 1.5 million to 45 million tons and that of Paraguay from 8.5 to 6.3 million tons.
Also this Thursday The Rosario Stock Exchange warned that recent dry conditions and low rainfall forecasts for the coming weeks in central Argentina raise fears that the current soybean campaign will suffer a “productive disaster.” like that of 2018, when the harvest did not exceed 38 million tons.
The 2021/22 Argentine campaign was hit by a drought and heat waves between December and the first half of January that forced the stock market to reduce its harvest estimate for the grain by 5 million tons last month. Currently, the Stock Exchange’s harvest estimate for soybeans is 40.5 million tons, 500,000 tons above the estimate in January due to a readjustment.
However, the Rosario Stock Exchange (BCR) warned that the specter of the 2017/18 campaign, when according to government data soybean production was 37.8 million tons due to a severe drought, runs through the Argentine fields.
For its part, corn gains 1.6% to US$258.65 per ton, the highest value in 8 months. The increase is motivated by concerns about South American crops due to the persistence of hot and dry weather.
In addition, the USDA cut its corn production estimates for Brazil by one million tons to 114 million.
By last, wheat advanced 2% and stood at US$294.22 per ton, due to the fact that the USDA “forecasts a lower global production and higher consumption, which leads to lower final stocks worldwide, also giving support to prices,” said the Rosario Stock Exchange (BCR).
Source: Ambito
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