The lack of rain in Argentina caused a rapid growth of prices for soybean meal
Ministry of agriculture of the USA declared that in the main area of soybean production in Argentina, the drought continues to worsen, and the total precipitation in November-January was 20% below its normal level.
it is Very important to get sufficient rainfall during the flowering and formation of pods of soybeans, so traders carefully look at the model forecasts in coming weeks.
Weather from the GFS model shows some improvement, "demonstrating the significant rains of 1-3 inches over 75% of Central, Eastern and Northern Argentina in the 6-10 day forecast
But, according to another forecast from Radiant Solutions in the next two weeks in Argentina there are no signs of great rain, and the lack of moisture in the soil will remain in most parts of the region.
weekend rainfall in Argentina was much lower than expected that has become a factor in the sharp rise in prices on Monday and Tuesday for soybean meal, and soybeans in Chicago.
Futures for soybean meal increased by 8% and trading at 400,25$/t, which is the highest spot contract since July of 2016, and prices for soybeans rose 2.5% to 370,47$/t Argentina is a major exporter of soybean meal, therefore, it is possible to reduce soybean crop dramatically undermined the price of the meal.
the decrease in oil prices to 62.7$/barrel, and the absence of growth factors of the prices of palm oil has become the factors of lower prices for soybean oil 1.8% to 700,8$/t
Argentine farmers are holding back sales of the old crop soybeans due to the price growth in comparison with last season, boosted by the planned reduction of export duties and the depreciation of the peso.