A good harvest lowers the price of soybeans
In the new weekly report by the USDA, the number of crops of soybeans are in good or excellent condition increased by 1% to 60%. The optimal development of plants weather gives us hope of getting a good soybean crop, which was predicted by experts from the USDA in August, what really surprised the market.
In Chicago soybean futures remain at 344 $/t of sales due to speculative traders during the harvesting campaign, expect a seasonal drop in prices.
a Decline in prices helps to activate the export of soybeans from USA, which for weeks had grown to 716 thousand tonnes, down from 668 tonnes in the previous week.
in addition to the markets pressure these studies Reuters that despite the low prices and excess global supply in season 2017/18 Brazil plans to expand the acreage under soybeans 2% to 85.7 million acres due to the land previously allocated for corn, because soybean was more profitable for local farmers.
However, it is likely that in 2017/18 MG Brazil will not be able to repeat the record of the 2016/17 season, when, thanks to a record yield of 34 t/ha were obtained, the largest in the history of the crop. In the new season, the gross yield will be 3% lower and will make 110,6 million tons and the average yield, even under favorable weather conditions, will not exceed 31,5 kg/ha.