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“Global demand is decreasing (China minus 10 million tons and other importers 3 to 4 million). So, global demand could shrink by 14 million tons this year. On the other hand, supply shrank by 34 million, with the drop in South America, generating a deficit of approximately 20 million tons”, comments the consultancy.
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However, the solution to this problem may already be on the way, as North American producers are extremely inclined to plant more soybeans than corn in the next harvest, according to the most recent data. “The return of supply balance should occur precisely with the increase in soybean production in the United States mentioned above. However, climate forecasts in the country are not favorable, as can be seen from the situation of winter wheat, whose B+E conditions are only 33%, against 53% on average”, he indicates.
“The wave of global strengthening of the American currency, especially in relation to the euro, given the discrepancy between the mild speech of the European Central Bank (ECB) and the tough speech of Federal Reserve directors, spilled over into the domestic exchange market and made the dollar outline a close above the R$ 4.70 line this Thursday”, concludes the agroeconomic consultancy, regarding the dollar, which also influences the soybean market.
By: Leonardo Gottems | agrolink
