Wind against the price of soy

Agrovoz Drafting

The strong harvest in Argentina is about to break a record, even if this forecast will not be accompanied by good international prices.

This headwind mainly concerns the main Argentine export product: soybeans.

According to the latest report on agricultural markets of the Córdoba Grain Exchange, oilseeds have bearish prospects for the coming months.

This projection coincides with that of the badyst Pablo Adreani, who in his latest opinion column for Agrovoz he badures that "the ghost of the $ 200 per ton flies over".

The causes

The main factor driving down listings is a record global output that would push supply to exceed consumption for the third consecutive year. "The ratio stocks / consumption would be record, reaching nearly 31%," says the report.

Other contractionary factors were Argentina's higher-than-expected production forecasts, Chicago hedge funds' net sell-offs and Argentina's soybean imports to record levels.

"We are not expecting significant increases in the price of oilseeds in the future, at least during this season, while bullish movements can respond to climate problems in South American crops or in the United States. American plantations, the abundant supply of soybeans in the world puts a limit, "says the document.

Cereals

For corn and wheat, the stock market offers a stable scenario.