South American soybean harvest drives US prices to four-year lows

Published 2024년 12월 20일

Tridge summary

The article reports on the promising soybean harvest in South America, particularly in Brazil and Argentina, with high supply contributing to low prices on the Chicago Stock Exchange. Factors such as reduced Chinese demand, lack of US government incentives for biodiesel production, and slower interest rate cuts by the Federal Reserve have also impacted the international market. Brazil's Department of Rural Economy (Deral) estimates a 20% increase in soybean production for the 2024/25 harvest, while Argentina's planting for the same period covers 77% of the projected area, showing improvement from the previous week.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The soybean harvest in South America is progressing with promising performance, particularly in Brazil and Argentina, where planting is almost complete and crop conditions are favorable. This scenario of high supply in the region has had a strong influence on prices on the Chicago Stock Exchange, which reached their lowest levels in four years. In addition to the abundance of South American production, other factors have contributed to the pressure on the international market, such as the reduction in Chinese demand — impacted by economic difficulties and a migration of purchases to South America —, the lack of incentives from the US government for biodiesel production, and greater risk aversion in financial markets after the Federal Reserve (the US central bank) signaled slower cuts in interest rates in 2025. In Paraná, the Department of Rural Economy (Deral), linked to the Secretariat of Agriculture and Supply (SEAB), estimates soybean production of 22.18 million tons for the ...

Source: Portal Do Agronegocio