Soybeans affirmed in Chicago and businesses in the local market

Concludes a week with increases for the price of soybeans in Chicago, with expectations of lower yields in Brazil despite the rains. Contracts hit seven-month highs.

The Brazilian Association of Vegetable Oils this week cut its production forecast by 4.2 million tons, now estimating 135.8 million tons.

For its part, the consulting firm Safras & Mercado lowered its estimate of Brazilian soybean exports from 90 million tons to 85.5 million.

While, In the local market, producers are moving and thinking about the marketing of soybeans in 2022, in a harvest that has had higher costs.

References are handled that are of values above US$ 525 per ton of soybeans.

Reports from Brazil that were consigned by Agricultural Monitor continue to show a strengthening of premiums, especially in the port of Paranaguá –in Paraná–, which is the reference for the markets in Uruguay and Argentina.

Local soybean crops, after the rains, showed a good recovery, with water that generally arrived on time. The first crops are more advanced; two good rains in February can put a floor on oilseed yields.

The first-class maize largely lost a lot of yield potential, while for the second-grade maize the water arrived on time and is well outlined.

In another order, in the wheat market, a loosening was consolidated after the strong advance that took place between Monday and Tuesday that took the cereal to a maximum in two months.

The market calmed down at the end of the week, with the dollar influencing and with negotiations at the highest level that distance the possibility of an escalation in the conflict between Russia and Ukraine, in the main wheat-producing area of the world.

Local – and regional – references for wheat remain far from the price peaks that occur in global markets, waiting for demand to be reactivated so that it can be transferred to domestic prices.

The wheat producer, in general terms, remains cautious while waiting for the barrage of supply to come out.

The commercialization began to be seen earlier in barley and rapeseed, in the case of rapeseed with values that during the harvest largely exceeded US$ 700 per ton.