New USDA report surprised the market soy
on Tuesday, after the release of a new USDA report, in which the yield of soybean increased to 49.9 bushels/acre or a 3.35 t/ha, prices for soybeans and corn fell substantially. However, at the end of the trading session they have played almost half of the drop.
Traders do not believe the increase in soybean crop, as according to other analytical agencies the size of soybean pods less than last year, and only 61% of the crop is in good or excellent condition, whereas last year this figure was 81%.
Despite the good potential of the crops, the current weather is not conducive to their development. August was cool than usual, and the temperature and rainfall in early September was also below normal.
The increase in yield estimation USDA experts explain the increase in the average weight of the pod of soybean compared with the previous year by 4% to 0,340 g. since 2004 the weight of the pod is in the range of indicators 0,268 g (2010) – 0,327 g (in 2016), due to genetic improvement of soybean seeds. However, for record-breaking yields the required perfect weather conditions at the end of the growing season.
World production of soybeans increased by 1 million tonnes to 348,44 million tons and the estimate of soybean imports by China increased to a record 95 million tonnes.
In Chicago the December soybean futures traded at the level of $350/ton.