The May oilseed contract rose from $424.67 to $437.25 per tonne; in Rio Grande do Sul, between 4 and 5 million tons of the 2023/2024 harvest are at risk
When the market was beginning to redirect its attention from South America to the Midwest of the United States, due to the volatility that usually marks the relationship between the weather and the progress of coarse grain planting in that country, the images of fields and cities under water in Rio Grande do Sul, in the extreme south of Brazil, The U.S. government today caused increases of up to 3% for soybean prices in Chicago due to the losses that excess moisture will cause in areas that have not yet been harvested in the state, which in the current campaign ranks second among the largest producers of the Brazilian oilseed, behind Mato Grosso.
At the close of trading, the U.S. market slates reflected increases of US$12.58 and US$10.57 on the May and July soybean contracts, whose adjustments went from US$424.67 to US$437.25 and from US$429.99 to US$440.56 per tonne. The same bullish trend was replicated for the value of soybean meal, with improvements for the aforementioned positions of US$12.58 and US$17.53, following a transition of the adjustment values from US$377.64 to US$393.63 and from US$384.70 to US$402.23 per tonne. In addition to being the world’s leading supplier of unprocessed soybeans, Brazil is the second largest exporter of flour, but increasingly close to Argentina’s leadership.