Higher forecasts for soybean and corn crops in Brazil restrain price growth

At the end of last week, December corn futures on the Chicago Stock Exchange reached another record – 2 227.2/ton, and November soybean futures rose to 4 453/ton amid increased demand from China, especially given the online talks between the leaders of the United States and China, which will be held today.

For the period October 27 – November 4, export sales of soybeans from the United States amounted to 1.289 million tons, and in general in the season reached 33.3 million tons. actual shipments for the week amounted to a record 3.702 million tons, of which 2.34 million tons will be delivered to China. Actual exports in the season amounted to 14.28 million tons, which is 18% lower than last year's pace.

Export sales of corn from the United States for the specified week amounted to 1.07 million tons, and in general in the season reached 32 million tons, which is 6% less than last year. Actual shipments for the week amounted to only 0.72 million tons, and in general in the season they reached 6.6 million tons, which is 13% lower than last year's pace.

Experts of the Brazilian agency Conab in the November report raised the forecast of corn production in the country in 2021/22 MG by 0.4 million tons to 116.7 million tons, including the first crop by 0.3 million tons to 28.6 million tons, while the estimate of the safrinia crop was reduced by 0.1 million tons to 86.3 million tons. according to the agency, in 2020/21 MG, 87 million tons of corn were harvested, including the first crop – 24.7 million tons, safrinia – 60.7 million tons.

The forecast for soybean production in the country was raised by 1.3 million tons compared to the October report to a record 142 million tons, which is 3% higher than last year's harvest, due to an increase in the estimated sowing area by 0.4 million hectares to 40.3 million hectares compared to 38.9 million hectares in 2020/21 MG. In November, the USDA estimated soybean production in Brazil at 144 million tons.

According to the Rosario Grain Exchange, 17% of the planned areas are sown with soybeans, and the total area of soybean sowing in Argentina will be the smallest in 15 years-16.18 million hectares.