Chicago: Soybeans benefit from US report

Soybean prices rose in Chicago on Wednesday after the publication of the Department of Agriculture’s VASE report on world production and reserves, while wheat declined markedly.

The USDA report sharply revised its forecast for world soybean production for 2021-2022, impacted by poor data in Brazil and Argentina.

“The USDA lowered crop forecasts in South America in recent months due to drought (producing countries),” said Dax Wedemeyer of US Commodities.

The report sharply cut forecasts for soybean production in Brazil, the largest producer of oilseeds, to 139 million tonnes against 144 previously expected. In the case of Argentina, the estimate has dropped by 3 million tonnes and for Paraguay by 1.5 million tonnes.

Wheat fell in both. The report revises world production upwards and indicates an increase in stocks, due to a crop that may improve somewhat in Argentina and the EU.

Thus, the bushel of wheat for delivery in March 2022 declined by 1.62% to $7.5775 from $7.7025 on Tuesday.

The bushel of corn for the same delivery declined 0.33% to $5.99, compared to $6.01 at the previous close.

At the same time, soybean rose by 0.99% to $ 13.9925 against $13.8650 in March.

VMT / JUL / BT / MR / LM