Soybeans: Beware of the euphoria

Among the factors limiting optimism, TF highlights the suspension of the release of official U.S. data due to the government shutdown, the interval of up to 60 days between deals and shipments, and the fact that the volumes announced by Beijing are only a resumption of the historical average, without a significant increase, around 25 million tons per year, below the average of 28.7 million. Thus, the consultancy considers it unlikely that prices will exceed the current levels near US$ 11/bushel, the highest in four years. For the Brazilian market, the trend is for prices to fall when the record harvest, estimated between 177 and 180 million tons, advances in January and February, increasing the domestic supply. Even with low profit margins, around 10%, TF Agroeconômica recommends that producers take advantage of the moment and realize profits while the market still offers good opportunities, remembering that it had already indicated selling at earlier times, when prices were ...