On-the-Ground Update

USDA jostles up a rally in Chicago after minor cropping area report

Published Apr 1, 2021
For the fifth time in a row during the last 2 weeks, the intended plantation has been estimated 2.7% below market expectations after the release of the USDA report. According to the Agency, 35.45 million hectares of soybeans are estimated, opposing to what the market expected it to be, 36.42 million. Although this represents an increase of 5.4 % compared to the last season, it has been far from the bull's eye, driving the market reaction in an up-trending curve that left the prices within the daily limits allowed in CBOT. Quarterly stocks were also reported, and even though with a good perspective, it has been overshadowed by the cropping area release.

At the Crude palm oil scenario, exports in Malaysia were reported yesterday above one million tons, a fact that surprised the market and pushed prices up on the intraday. Production is not expected to grow at the rate of exports, so March stocks might have ended up below the previous month.
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