Forecasts of a record soybean harvest in Brazil and a decrease in the heat in the US reduced the quotation by 4.7%

The front that brought heavy rains to areas of the US corn belt over the weekend dropped temperatures from 35 ^o C to 30-31 ^o C, causing soybean prices to fall by 4.7-5% yesterday. In addition, the forecast of a record soybean harvest in Brazil in 2024 is putting pressure on prices.

The Brazilian agency Safras & Mercado predicts that in 2024, thanks to the increase in the sowing area, the country will harvest a record 171.5 million tons of soybeans, which will exceed the USDA's forecast of 165 million tons. Soybean exports are expected to increase by 4 million tons to 99 million tons in 2024 , and processing - by 1.6 million tons to 55 million tons.

In the Southern and Central plains of the USA, in contrast to the Northern ones, there was no precipitation, and only at the end of the week there will be rains that will reduce the heat.

On the Chicago Stock Exchange, September soybean futures fell 4.8% to $503.6/t, and November soybean futures fell 4% to $489.3/t, completely losing the growth in July due to worsening agro-meteorological conditions. conditions in the USA.

According to USDA's weekly Crop Progress report, soybean crops are growing faster than last year and the 5-year average. As of July 30, 83% of crops have bloomed (77% last year and 78% on average), and pods have formed on 50% of the area (41% last year and 47% on average over 5 years).

For the week, the number of soybeans in good or excellent condition fell 2% to 52% (60% last year), especially in Kansas, Missouri and Minnesota.

During the period of July 21-27, the export of soybeans from the United States increased by 14% compared to the previous week to 329.5 thousand tons, and in total in the season amounted to 50.512 million tons, which is 5.9% lower than last year's pace.

The Canadian Prairies received scattered rains, but they came too late to improve the condition of much of the wheat-to-canola crop.

The decline in soybean prices increased the pressure on canola and canola quotes:

• November canola futures on the Winnipeg exchange yesterday fell 3.3% to CAD794/t to $593/t,
• November rapeseed futures on the Paris Euronext fell by 3% to €445/t or $489/t, losing 7.7% of the price in 2 sessions.