World: Corn and soybean prices climb again over a supply shortfall concern
Caio Alves
Published 2021년 1월 13일
Corn and soybean prices uptrend again this week over reports from the U.S. Department of Agriculture (USDA), based on the assumption stocks of both commodities continue to narrow supply in a shortfall.
While corn is pointing to a US$5 per bushel and soybeans edged toward US$14 last Tuesday after USDA raised seasonal estimates averaging US$0.20 per bushel for corn, and US$0.60 per bushel of soybeans. Counting on a limited supply in North and South Americas put together, and a continued and record-breaking demand from mainland China is hard to foresee upcoming price events.
Production in Brazil showed that moisture levels remain below historic standards despite recent rainfalls,. However, soybean crop is still expected to exceed previous production records, which it could be supporting prices in the upcoming weeks as it meets to the country’s crop matureness and harvest.
In Argentina, the availability of feed supplies remain restrict due to labor scarcity and political disputes. Not to mention the strikes at major Argentine ports. During the 1st week of 2021 Argentine Ministry of Agriculture also advised concerns about corn supplies and it announced suspension of exports all the way through March. According to the Ministry, this was deemed necessary to curb rising prices for animal proteins like pork, chicken, eggs, milk and animal feed. However in favor to some trade groups a daily quota was established on January 11 after some criticism.
China acquired 39 million tons of soybeans from the U.S. alone as of December 31, 2020, exceeding the record set by the period, as of 2016-17 campaign by 6 million tons. According to the USDA, domestic prices for corn in China hit US$394 per ton in December, driving intense demand for imports of corn for feed to grow the nation’s swine industry as it continues to recover from African swine fever.
While corn is pointing to a US$5 per bushel and soybeans edged toward US$14 last Tuesday after USDA raised seasonal estimates averaging US$0.20 per bushel for corn, and US$0.60 per bushel of soybeans. Counting on a limited supply in North and South Americas put together, and a continued and record-breaking demand from mainland China is hard to foresee upcoming price events.
Production in Brazil showed that moisture levels remain below historic standards despite recent rainfalls,. However, soybean crop is still expected to exceed previous production records, which it could be supporting prices in the upcoming weeks as it meets to the country’s crop matureness and harvest.
In Argentina, the availability of feed supplies remain restrict due to labor scarcity and political disputes. Not to mention the strikes at major Argentine ports. During the 1st week of 2021 Argentine Ministry of Agriculture also advised concerns about corn supplies and it announced suspension of exports all the way through March. According to the Ministry, this was deemed necessary to curb rising prices for animal proteins like pork, chicken, eggs, milk and animal feed. However in favor to some trade groups a daily quota was established on January 11 after some criticism.
China acquired 39 million tons of soybeans from the U.S. alone as of December 31, 2020, exceeding the record set by the period, as of 2016-17 campaign by 6 million tons. According to the USDA, domestic prices for corn in China hit US$394 per ton in December, driving intense demand for imports of corn for feed to grow the nation’s swine industry as it continues to recover from African swine fever.
Related market data
What to read next
Read more relevant content
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.