Porto Alegre - RS - Brazil - 20231109
Source: USDA and Rio Grande Agricola database.
In its new supply and demand report, the USDA adjusts soybean production and productivity for the 2023/2024 harvest. The slight improvement in production and productivity data made it possible to maintain the export and crushing program for American oilseeds.
The new indicators of American production put pressure on the Chicago stock exchange, bringing down future maturities, with a drop of more than 20 points in November, January and March maturities and, in other maturities, a smaller drop ranging between 10 and 20 points.
Despite being consolidated, American production did not bring major variations in the latest reports and the fundamentals are focused on the climate in South America, bringing consistency for better production in the south of Brazil and Argentina, but greater concerns in the north and mid-west region , where there is talk of replanting soybeans due to the adversities of the climate, sometimes too hot, sometimes heavy rains, as in the case of the State of Paraná, where recent rains hit the crops hard, harming the development of the plantation, where many areas will need to be replanted, resulting in a significant increase in production costs.
Despite the adverse weather conditions in Brazil, the USDA maintained the optimistic number of a new record for soybean production, with the possibility of reaching 163 million tons, but some analysts already doubt this number, considering it unrealistic, especially due to the inconsistencies of the climate during the planting window in producing states.
Comments