GLOBAL - News last week that China has bought 6 cargoes of US beans has given new life to soybean prices, lifting them above their 200-day moving average, according to grain analysts at GeoGrain.
In addition, continued wet weather in Argentina has traders expecting flooding and excess moisture during the planting season to take its toll on Argentina’s crop. Thursday morning, Brazil’s government released their latest crop estimates, pegging their soybean crop at 82.6 MMT and the corn crop at 71.9 MMT. Both are higher than USDA’s projection for Brazil, which are estimated to be 81 MMT and 70 MMT, respectively.
Last week, analysts at FCStone do Brasil shaved two per cent off their estimate for Brazil’s 2012/13 soybean crop, pointing to dryness in the southern producing regions as a likely cause of lower yields. Informa also lowered its estimate for Argentina’s 2012/13 soybean production to 58.4 MMT, from 59.5 a month ago, citing a reduction in expected plantings. But it raised its projection for Brazil’s 2012/13 soybean crop to 81.4 MMT, from 81.25 previously.
TheFishSite News Desk