Grain prices recorded at general decline in the Chicago marketwhich sent soybeans and corn to their lowest prices two and three years ago, respectively, following the release of the U.S. Department of Agriculture’s (USDA) global supply and demand report.
The January soybean contract fell $9.37 (2.07%) to $443.04 a ton, while the March contract fell $4.50 (0.99%) to end the day at $449.83.
This decline was attributed to a increase in ending inventories in the United States following an increase in production in that countryrevised upwards by the USDA, which increased the volume from 112.39 to 113.34 million tonnes, against the 112.51 million expected by operators.
“This figure, which was based on average yield growth, was in addition to the increase in ending inventories in the United States, which went from 6.68 to 7.62 million tons, compared to the 6.61 million expected by the previous relationship,” they underlined from the Granar brokerage.
On the other hand, although the US agency cut Brazil’s production estimate from 161 to 157 million tons, it fell short of market expectations, while at the same time raising the Argentine crop forecast from 48 to 50 million tons.
AS, The price of oilseeds hit a low in December 2021as “traders rushed to liquidate their positions after the government reported larger-than-expected Brazilian harvests, as well as higher yield and production levels in the United States for the 2023/24 campaign,” indicated the Stock Exchange of Rosario (BCR).
By-products accompanied the grain, with a drop of 11.13 dollars (2.79%) for flour to 387.23 dollars per ton, while oil lost 10.36 dollars (0.96%) to position itself at $1,063.71.
While, corn fell by $4.23 (2.34%) and closed at $175.98 a ton, ranking as the lowest price in three years, according to the BCR.
The drop came after the USDA increased the record volume of the 2023/2024 U.S. crop from 386.97 to 389.69 million tons, versus the 386.76 million expected by private individuals.
“With this data as the axis, the organization increased feed use and demand from the ethanol industry, but estimated exports unchanged and had to increase its ending inventory projection from 54.12 to 54 .91 million tonnes, compared to the 53.47 million expected by the operators; this new number of the definitive stock marks a jump between the campaigns of 58.93% against the 34.55 million in 2022/2023″, specify Granar.
As for Brazil, the adjustment was from 129 to 127 million tons, far from the 117.60 million tons estimated by that country’s Supply Company (Conab).
Finally, wheat fell by $2.85 (1.28%) and settled at $218.99 per ton.
“To a large extent, the losses were in line with the trend of coarse grains, especially corn, as higher production in the United States will imply a greater supply of forage,” they explained from Granar.
Source: Clarin
