Weekly Price update
Soybean May 19 futures contract has not had the best of weeks. The price settled at 895.2 cents, down by 7.2 cents from open on Sunday 7th April. There has been largely bad weather in the US Mid-West with snowstorms limiting the movements of crops. Although analysts have mentioned that although this weather may not be good for soybeans, it may benefit other grains such as wheat. Currently farmers are struggling to make a decent profit on crops as they have too much old stock and a decrease of demand from China is making it harder to move the stock.
Harvest estimates for Argentina and Brazil
Over the past week, both Argentina and Brazil has it's forecast for the harvest of soybean. The Buenos Aires Grains Exchange raised its estimates to 55 million tonnes, a day after the Rosario exchange increased its estimate for the crop. This may affect trade in the U.S as it is generally slightly cheaper to buy from Argentina and Brazil that the U.S, meaning the U.S will have to hope to be rid of the tariffs between them and China.
Sources:
https://www.cnbc.com/2019/04/12/reuters-america-grains-corn-and-soybeans-set-for-weekly-drop-on-slow-exports-and-big-latam-crops.html
CME - https://www.cmegroup.com/trading/agricultural/grain-and-oilseed/soybean_quotes_globex.html
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