Soybean prices rise amid dry weather in South America

Soybeans on the Chicago Stock Exchange are down for five straight sessions amid dry weather in South America and anticipation of a new UDA report that analysts say will cut soybean production forecasts for the U.S. and Brazil and slightly raise Argentina's.

The heat and lack of rainfall in central Brazil may result in replanting of some soybean areas. In the state of Mato Grosso, 83% of the area is sown with soybeans, but in the next 10-14 days there will be heat of 30-36 ^o C without precipitation. At the same time, heavy rains of 50-60 mm fell in Argentina last week, which replenished moisture reserves on the eve of sowing.

In the USA, on November 5, soybeans were harvested on 91% of the area (86% on average over 5 years). The export of soybeans for the week amounted to 2.09 million tons, and in general in the season reached 12.2 million tons, which is 5% lower than last year's pace.

November soybean futures on the Chicago Stock Exchange rose 1% to $492.4/t yesterday (+4.1% for the week, +5.9% for the month) amid the drought in Brazil.

In Ukraine, the growth of export purchase prices for soybeans stopped at the level of $390-405/t or UAH 16,000-16,400/t with delivery to the Danube or Black Sea ports, and processors were forced to raise prices to UAH 14,500-15,000/t in order to attract the necessary volumes of raw materials. t with delivery to the factory. At the same time, demand prices for deliveries to Romania and Italy increased by $10/t to $395/t and $425-435/t, however, the blocking of Ukrainian borders by Polish carriers will increase queues at crossings with Romania, Hungary and Slovakia.

According to Spike brokers, Ukraine exported 432,000 tons of soybeans in October (twice as much as in October 2022), of which 198,000 tons went to the EU, 118,000 tons to Turkey, and 72,000 tons to Egypt. The share of sea and river exports fell to 60% compared to 72% in September.