Soy Price Breaks $ 600 Barrier, Nears All-Time High

The price of soybeans breaks the $ 600 barrier in the Chicago market, the highest level since September 12, 2012, and is approaching the 2012 record when it hit $ 650.

The Mayo position increases by $ 6 to reach $ 601, which represents 92% more than oilseeds marketed a year ago, when it hit $ 313.

One of the main causes of the soybean surge is due to low harvest stocks in the United States, at 42 million tonnes in March, according to that country’s Department of Agriculture.

With a production of 112 million tonnes, the ratio (stock / use) at the end of the campaign would remain at 3% and is at the lowest since 2014. To measure this figure, in 2020 it was 12% and two years ago , at 2.3%. Also, looking at what’s to come for the next campaign, the stock may be much smaller.

In this framework sNew USDA report to be released on Wednesday will be essential on production and inventory in the North American market.

While grain exports to Argentina continue at a good pace. Between January and April, foreign exchange settlements totaled nearly US $ 10 billion; They were $ 9,755 million according to the Chamber of Petroleum Industry of the Argentine Republic (CIARA) and the Center of Cereal Exporters (CEC).

and according to Rosario Stock Exchange calculations a few days ago, total shipments would hit a record $ 21,865 million this year, an increase of $ 7,359 million from 2020. But with this new increase, these values ​​will increase further.

To the state coffers Some $ 7,100 million would come in as holdback just for the soy complex, continuing the analysis of the same stock exchange entity.

These increases have also been partially passed on to the internal market. The price of soybean slate at the Rosario Cereals Arbitration Chamber traded at 33,000 pesos on Monday, an increase of 63% in one year, and corn at 22,900 pesos, an increase of 100 % also compared to 365 days ago.

With this increase in grain value, the purchasing power of producers has increased, despite the fact that they do not capture the total price of the international market due to withholding taxes and the exchange rate differential. In other words, they need less kilos of soybeans to buy goods.

In the case of an international brand class 7 combine with a 35-foot drapper, the producer needed 2,760 tonnes of soybeans in May of last year compared to 1,671 tonnes in the same month of this year.

Going to the 4×4 truck business, a segment highly sought after by producers, to buy a pickup from one of the top-selling companies requires 165 tonnes compared to 218 tonnes in the same month of 2020.

He also did the math for a high end phone by comparing the high end. As of May 2020, 13.2 tonnes were needed compared to 8.6 tonnes of beans which are currently needed.