The agricultural commodity had caught a hit on profit-taking and South America’s weather conditions developing to enhance crop yield prospects. However, could soybean prices retest $14?
March soybean futures proposed $0.2875, or 2.14%, to $13.7225 per bushel at 15:55 GMT on Tuesday on the Chicago Board of Trade (CBoT). Notwithstanding last week’s slide, soybean prices are yet up 5% this month.
For weeks, soybean prices rose on dry weather trends in Brazil and Argentina, two of the biggest soybean producers. In recent days, useful rain guides have started popping up throughout the countries, allowing harvests to better. This has market analysts raising their yield expectations and better output projections for the new marketing season.
As stated by S&P Global Platts, the average estimate for Brazilian soybeans in the 2020–2021 marketing season reviewed upward by 400,000 metric tons to 132.2 million metric tons.
Brazil’s soybean prices will endure high in the coming weeks
Soybean production measures have increased from 500,000 metric tons to 47 million metric tons.
In a new report, the US Department of Agriculture’s (USDA) Foreign Agricultural Service projects that Brazil’s soybean prices will endure high in the coming weeks on the harvest setback. Although weather conditions have developed, FAS researchers say that domestic soybean deficiency will continue for at least six weeks.
Has the African swine flu reverted to China? After the world’s biggest soybean consumer ostensibly took the outbreak among its inventory of pigs, there are rumours that new strains of the swine flu have been detected at a pig farm in China. The pig farming sector was decimated in August 2018, appearing in about half of its swine population.
For now, as stated by the Ministry of Agriculture, China’s hog production capacity is prophesied to equal 100% of its pre-swine flu level in June of this year. But if the African swine flu reappears, the pork and soybean industry could take a defeat this year.
How this would influence the US-China’s phase one trade deal would also be up in the air.
In different agricultural commodities, March corn futures soared $0.175, or 3.42%, to $5.29 per pound. March wheat futures scored $0.1725, or 2.66%, to $6.6575 a pound. March coffee futures spiked $0.0235, or 1.91%, to $1.256 per pound.