Grain prices fall due to prospects for a good harvest

Grain prices fall due to prospects for a good harvest
November 12, 2023 – 09:51

The market did not expect a downward trend for corn and soybeans, after the monthly report from the United States Department of Agriculture.

Photo: Freepik

He United States Department of Agriculture (USDA) published its monthly report where it establishes an increase in the production of soy and corn, which caused a break in the upward streak that the price of soybeans had been having both internationally and in the Uruguay.

Last week the price of soy It had reached a high of $460 a ton, but dropped to below $450 after the US department’s report. Meanwhile, to international levelsoybeans closed the week with 504 dollars, a difference of 4 dollars compared to the previous week.

He corn, For its part, it also lowered the bar because a record harvest of 387 million tons is expected. This caused prices to be below 200 dollars per ton in both USA – where a good harvest awaits –, as in South America. Meanwhile, this caused a 3% adjustment which, in turn, caused the position for December to drop from 187 to 182 dollars, while that of May 2024, a reference for the harvest of Uruguay, fell from 197 to 192 dollars.

A harvest of 3.5 million tons is expected in Uruguay

The soy could be benefited in this way by the meteorological phenomenon of The boy, which will bring with it abundant rain, in contrast to what was a season with little rainfall.

The climate analyst at Cofco Argentina, Diego Bancalari, He referred to the prospects for the region in dialogue with Radio Carve and stated that in the short and medium term there is “very good news” for Argentina, Uruguay and part of Paraguay due to the “recharge” of moisture in the soils, although The boy does not affect the same Brazil, which in recent weeks has shown problems in its production.

“In Uruguay We expect a productive jump of 900,000 tons,” he said. Bancalari with respect to the 2022/2023 harvest, after which he anticipated that they project between 3.2 and 3.5 million tons of soy. However, he warned that there is “a warning light” due to the tendency towards a “surplus regime” of rain during this month and next.

Source: Ambito

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