How the Brazilian soybean and corn markets behaved

Published 2023년 3월 27일

Tridge summary

The article provides an overview of the recent trends in the soybean market, highlighting the challenges faced by Brazil in logistics and the impact of US interest rates. The logistical issues in Brazil have led to a decrease in soy prices for producers, delayed shipments, and overcrowding of warehouses, resulting in increased storage costs. In response, China has been purchasing US soybeans to ensure April shipments. Meanwhile, the US is experiencing difficulties in maintaining a 2% inflation target due to a heated economy and is keeping an eye on Brazil's harvest progress and the potential effects on logistics and prices. The article also mentions the progress of the 2nd corn crop planting in Brazil and the renewal of the Black Sea export agreement, expressing concerns over transport costs and potential impacts on the market. It concludes by discussing the upcoming events and reports that are important for the market, such as the USDA's updates on soybean planting intention numbers and the progress of the Brazilian harvest.

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

Original content

Last week's highlights for soybeans: worsening of the logistical situation in Brazil; China buying US soybeans and rising US interest rates. As a result, the contract maturing in May/23 ended the week quoted at U＄ 14.29 a bushel (-3.18%) and the contract maturing in July/23 ended the week at U＄ 14.07 a bushel ( -3.70%). Domestic logistics in Brazil, especially in relation to outflow to ports, has seen an increase in demand. Consequently, prices reflect this increase due to the inability to increase the supply of road transport. This logistical bottleneck has influenced the drop in soy prices for producers and delayed shipments to ports. In addition, the main grain outflow ports are operating at their maximum capacities, with long queues for loading and unloading ships to transport soybeans. With the difficulty of selling grains and the drop in prices in the physical market, many producers are choosing to store their products, generating an overcrowding of warehouses, which, ...

Source: GrupoCultivar