Soybean harvesting in South America pressure on world prices

Jumping the price of soybean futures in Chicago last week due to political and weather factors resulted in an overall drop in prices by almost 3% in two weeks.

After declining the day before, on Friday, may futures rebounded to 338,4 $/t because of the news about the harvesting of soybeans in South America and the continuation of trade negotiations between the US and China this week in Washington.

Despite the improved weather in Brazil, the experts continue to lower its forecast of soybean production. Thus, the Agency SAFRAS reduced preliminary estimate of 0.3 million tonnes to a total of 115.4 million tons.

According to Safras & Mercado, as of February 15 soybeans in Brazil are collected from 32.9% of the area, whereas at the same date last year the figure was 15.8% and the average for 5 years is 17.7%.

estimates of the Paraguayan Association of exporters of grains and oilseeds, the soybean crop in the country in 2018/19 MG reduced in comparison with the previous season by 30% to 10 million tonnes, mainly due to declining productivity in 1,5-1,8 t/ha or 22.2-26.2 bushel/acre by severe drought in November and December, when it was formed pods.

In the Northern regions of Paraguay as of mid-February soybeans are collected on 80% of the area, with yields 30-40% lower than last year.