Uruguay with good production and complicated markets

The winter harvest will be historic in terms of volume, despite certain quality problems, especially in wheat. Yields are good to very good, with several outstanding farms on the coast. Rapeseed, which did not look good at the beginning of the cycle, yielded better than expected. On the other hand, first-rate corn is in excellent condition and soybeans planted on time started the cycle very well, with good water. The problem is the markets: due to various factors, not only have prices not recovered, but they have marked a new downward step. In the case of soybeans, they are at new lows in more than 4 years (graph). In this case, the bearish factors are not new, but they have become more acute. The clearest and most noticeable is the Brazilian harvest, which has been setting records year after year and, in the current cycle, is aiming for a new high. This is because the climate is helping, after some uncertainty due to possible drought, an extreme that - according to predictions - ...