Between planting and harvesting

The trade agreement between the United States and China—which includes the resumption of Chinese purchases of U.S. soybeans—boosted the international price of the oilseed (graph), just as planting is underway in our country and the region. With this news, reference prices in the local market advanced more than 15 US$/ton, from about 360 to 375 US$/ton, with some companies offering a few dollars more. However, the markets are very volatile, as the aforementioned agreement—more like a truce—may be subject to revisions or eventual setbacks. The global rivalry between the U.S. and China is a multi-chapter story and—with Trump in the mix—nothing is entirely definitive. The mentioned increase in prices, while always welcome, does not imply a substantial change, at least for now. Producers still aspire to 400 US$/ton, and this level is still far off. Additionally, the restart of Chinese purchases in the U.S. (the commitment is for 25 million tons annually, with purchases of 12 million ...