The one that concludes has been an irregular week, in which climatic problems in South America and tensions between Russia and Ukraine were once again determining factors in the behavior of the grain market.
The first two days were profit-taking and the market believed that diplomacy was opening a path to political relaxation in the conflict, but then the absence of rains in Brazil, Argentina and Paraguay –something that affects the north of Uruguay– weighed more heavily and prices rose againwhich brought soybeans back above the line of US$16 per 27.2-kilo bag, which translates into US$ 600 per ton available in Nueva Palmira deposit in Uruguay.
Not only are international prices interesting, but also the situation of premiums, that is, the price differentials between international and local references.
john samuel
Soybean crop about to be harvested.
Importers’ eagerness to obtain grains
In order to get hold of the grain, importers are paying prices in South American ports that exceed the Chicago references, which stand at US$590 per ton.
EO
Another equally important novelty this week is the awakening of rice prices, particularly in Brazil, where the drought leads to significant losses that will reduce the supply of grain from the neighboring country.
In that way, in the last two months the price of rice in Brazil went from US$ 11 to US$ 14.30 per bagalso helped by the appreciation of the real, which generates a rise in prices in dollars due to the exchange effect.
Uruguayan rice is heading for another year of good yields, while other crops have a long way to go.
For now, Uruguay seems to be heading for a good harvest, and next week may bring some rains of enormous importance as the crops enter decisive stages of defining their yield.
Meanwhile, growers also have reason to think about their next planting of winter crops.
There the conflict between Russia and Ukraine may cause a sharp rise in the prices of wheat and barleyBut for now the star continues to be rapeseed, which is offered at prices similar to those of soybeans.
