The price of soy without flooring: Usda brought more bad news

Agrovoz Drafting

With a price of $ 293 per tonne, soybeans continued to fall this Friday to the lowest values ​​for more than 10 years in Chicago.

And if there was no bad news, the US Department of Agriculture (Usda), in its monthly report on supply and demand, showed renewed momentum.

"The new USDA figures are structurally bearish for beans, as they show a growing global supply system.The impact of the trade war is once again evident," said Granar consultant when badyzing data from Usda.

The new USDA figures are structurally bearish for beans, as they reveal a growing global supply system. The impact of the trade war is again evident. We offer you the badysis of the O & D report: https://t.co/GyE5fTqKMT pic.twitter.com/8LDEC618DH

– Granar SA (@GranarSA) May 10, 2019

Soy

According to a summary prepared by the Córdoba Grain Exchange, with a harvest that will eventually reach 56 million tonnes in Argentina and 117 million in Brazil, world stocks would be 113.2 million. "The highest in history and above the 108.5 million expected by the market," said the stock market.

Soy is weighed in the trade war between China and the United States, which affects the Asian giant's purchases from the North American nation; and the severe outbreak of African swine fever, which is also prevalent in China, and which can reduce the demand for soybeans, which is mainly used in the country to feed pigs.

A new report has been published by the United States Department of Agriculture.

How does its production happen and what impact on the market? Https://t.co/nbZ3UWE4r5 pic.twitter.com/xgi0aongfi

– CBA Stock Exchange (@BCCBA) May 10, 2019

At the same time, when it released its first production projections for the 2019/20 cycle, Usda estimated production at 355.7 million tonnes worldwide. l & # 39; history.

On this basis, the agency is forecasting stocks for the upcoming season of 113.1 million tonnes, which is also higher than private estimates that indicated 109.55 million tonnes.

Corn too

But the bad news is not exclusive for oilseeds: in corn too, all the data revealed by the Usda are negative for the price.

"Worldwide, final stocks are at 325.9 million tonnes for the 2018/19 season, which is nearly 10 million tonnes above market expectations," said the stock market.

Added to this is the fact that the 2019/20 forecast forecasts record production of 1,113.8 million tonnes.

Wheat, better

For wheat, the numbers are not conducive to higher prices, which are high in historical terms, but they are not pushing down either.

"The final stocks in the 2018/19 cycle are expected to reach 275 million tonnes, 900 000 less than the estimates of private companies, and for the new season, this variable would be around 293 million tonnes (277.42 million tonnes). expected by the market) ", summed up the market entity.