The price of soybeans is at the highest levels of the last eight months

The damage caused by the extreme heat and the lack of rain in areas of Brazil, Argentina and Paraguay generate the best scenario for the summer crops that are grown in Uruguay.

The price of soybeans is at its maximum values considering the last eight months and close to all-time highs.

There were businesses that came to exceed the US$ 560 per ton placed in Nueva Palmira last week and the rains allow producers to get excited about a better harvest than expected.

However, cereals such as wheat and corn eased this week. Particularly in the case of wheat, the fear of a war between Russia and Ukraine has subsided.

This Friday the winter Olympics begin in China and it is discounted that a conflict by Russia will not be triggered in the coming weeks.

On the other hand, it has rained in the wheat areas of Kansas where crops were threatened by drought.

Wheat and corn remain stable on the axis of US$275 per tonne and US$240, respectively, in Chicago and for the reference positions of Uruguay. They are interesting prices, but within what has been the trend of the last two years.

On the other hand, in soybeans, on the one hand, the strong demand for oils for energy and, on the other, the sharp cut in production in Brazil and Paraguay, lead to an extremely nervous market.

Celina Mesquida, a broker at the firm RJ OBrien in Chicago, explained this week that Brazil’s soybean exports were the second largest in history in January and may be a record in February. But at the same time, Brazil’s production projection fell from 145 million tons to 130 million, or less.

The next report to be released by the United States Department of Agriculture (USDA) will be closely watched in that projection.

Paraguay and Argentina will also have cuts in the expected production.

It is a very favorable outlook for Uruguay for nowbut in which it remains to be seen what happens in the second half of February and during March.

Too the rebound in the price of rice in Brazil stands out this week, which also suffered losses due to lack of water and excess heat. Thus, the grain that is lagging behind in prices has at least a glimmer of hope for an upturn.