Third week of low values ​​in the grain market

With the grain harvest in full swing in the Northern Hemisphere and a bountiful corn crop in Brazil, the price of cereals has had three weeks of collapse.

Wheat, which spent several weeks in the line of US$400 per tonne, is now above US$330 per tonne for the December positiona reference for the next Uruguayan harvest.

The drop in corn is also strongwhich is also gaining some area in the United States, where the start of summer crops is favorable, with rains forecast for the next two weeks.

After two weeks of sharp falls, the price of soybeans is a little firmergiven the lower planted area reported by the United States Department of Agriculture (USDA) this Thursday.

Until now, the market was managed with a soybean area of ​​36.8 million hectares. The market was already expecting an adjustment to 36.6 million, but finally it was 35.74 million.

With one million hectares less, it is still a larger area than last year, but the data is combined with a very low level of oilseed stock. This makes the months of July and August, the hottest months, very risky. Any yield loss translates into future stocks shrinking to dangerous levels. But even in this case the market is weak and cancellations were reported in already agreed exports.

The corn area in the United States rose, but remained within expectations, a planting of 36.39 million hectares, 200,000 more than the estimate.

EO

It seems to confirm that the boom in agricultural prices has passed, which will generate tensions such as those seen in the rice sector.

With a low dollar, a fall in prices generates an adverse input/output relationship.

While, in Uruguay winter crops are in very good condition. They were sown on date and have very good yield potential, although there is a lack of water in the south of Uruguay which, as is the case in Argentina, poses a certain risk to the crops.

john samuel

The reference price for wheat for the next harvest fell.