Soy week is marked by cuts in production estimates in Brazil

Published Jun 16, 2024

Tridge summary

The USDA lowered its prediction for Brazil's soybean production for the 2023/24 season from 154 million to 153 million tons due to flooding in Rio Grande do Sul, causing a slight decrease in global stocks. Conab forecasts a 4.7% drop in Brazilian soybean production for the same season, with an increase in cultivated area but a decrease in yield compared to the previous season. Meanwhile, Safras & Mercado has also reduced its estimate for Brazilian soybean production for 2023/24 due to the impact of the flooding.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The week was quite busy for the soybean market. The United States Department of Agriculture (USDA) released its June supply and demand report on Wednesday (12). On the same day, the US inflation and interest rate decision were published. This set of factors brought a lot of volatility to the Chicago Mercantile Exchange (CBOT). Here, the National Supply Company (Conab) released its June data on Thursday. The USDA revised Brazil's production downwards in the 2023/24 season, from 154 million (May report) to 153 million tons, due to the floods that affected Rio Grande do Sul. However, the number was below the estimate of the market, which predicted 151.8 million tons. In any case, it was enough to reduce global stocks for the 2023/24 season by around 700 thousand tons, to 111.07 million tons. For the 2024/25 season, world stocks were also reduced, from 128.5 million in May to 127.9 million tons in June. For Conab, Brazilian soybean production is expected to total 147.353 million tons ...
Source: CanalRural
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