Soybean prices have been moving steadily higher since December, when South American soy regions began to experience drought. There were pockets of relief from the dry weather, but overall crop estimates have been slashed across the board for both major producers, Brazil and Argentina, as well as for smaller producers, such as Paraguay. Both Brazilian and Argentinean output will be substantially below last year’s and – more significantly – well below expectations that were based on planted area. According to the March 9 USDA crop report, the estimate for Brazilian output has tumbled to 68 million tonnes, down from 75 million tonnes in December. Argentinean production is now estimated at 46.5 million tonnes, down from the 52-million-tonne December forecast.
South American soybean yield estimates keep falling
Soybean prices have been moving steadily higher since December, when South American soy regions began to experience drought. There were pockets of relief from the dry weather, but overall crop estimates have been slashed across the board for both major producers, Brazil and Argentina, as well as for smaller producers, such as Paraguay. Both Brazilian and Argentinean output will be substantially below last year’s and – more significantly – well below expectations that were based on planted area. According to the March 9 USDA crop report, the estimate for Brazilian output has tumbled to 68 million tonnes, down from 75 million tonnes in December. Argentinean production is now estimated at 46.5 million tonnes, down from the 52-million-tonne December forecast.