Forecast soybean production in Brazil increased to last year's level
in anticipation of the release of USDA reports, leading expert of the Agency released its estimate of soybean production in Brazil. Traders believe that the USDA report will be bearish for soybeans, and watching the weather in South America.
In the event of a reduction in USDA's forecast of demand for U.S. soybean price could fall below 9 $/bushel. The market is still dependent on weather conditions in the South of Argentina and Brazil, where there is a drought. However, the rainfall, meteorologists promise next week, gave the opportunity to some recent buyers to start selling.
the Agency Conab raised its forecast of soybean production in Brazil in 2017/18 MG 1.2 million tonnes to 110,4 million tons, which is 3.2% below the record crop of last year. The forecast of soybean exports from Brazil increased by 1 million tonnes to 65 million tonnes, which is 4.5% lower than in 2016/17 MG.
AgRural Experts believe that in season 2017/18, Brazil will collect 114 million tons of soybeans, which is slightly worse than the record crop of last season at 114.1 mln t. the Forecast has been increased relative to the previous report by 1.1 million tons due to adjustment of productivity in some regions due to strong precipitation in December will exceed togoro 1%.
the Good rainfall that took place in January in Argentina and Brazil, will have a positive impact on the crops and will allow to complete the sowing in Argentina, though, and stir until start harvesting soybeans in some regions of Brazil.