Argentina
Reacting to the news out of Argentina on Monday, U.S. soybean market prices were at their lowest levels in more than a month.
Argentina’s main oilseed union SOEA has threatened a national strike.
Dan Basse with Ag Resource, says grain markets set back on profit taking after running into chart resistance and news Argentina is lowering its export taxes on grains.
Scott Varilek, Kooima Kooima Varilek, says cattle futures are making record highs once again with cash in the North trading from $210 to $212 on Friday morning. Grains under pressure as Argentina lowers its export taxes on grains.
USDA’s April WASDE report showed larger wheat and soybean ending stocks, but smaller ending stocks for corn. More surprising, still, was the lack of changes to South America’s crop estimates.
Analysts say it’s go-time for the impacts of South American weather, but Argentina’s new president, and major policy changes, also spooked the markets this week. Chip Nellinger and Brian Grete explain why.
Fields in central Brazil are baking in high temperatures and low levels of moisture. One meterologist says farmers there are now questioning whether they will plant their second corn crop, the so-called safrinha crop.
Recent WASDE reports had assumed another record Brazilian soybean crop and Argentina returning to normal, but the El Niño weather pattern might have something to say about that.
A historic drought has severely cut the size of this year’s crop in Argentina, especially soybeans. Processors will be forced to import soybeans just to stay in business.
A once-a-century drought has lowered the water level of Argentina’s main grains transport river, reducing farm exports and boosting logistics costs in a trend that meteorologists said will likely continue into 2022.