Selling soybeans may be a better option

According to TF Agroeconomic reports, selling the soybeans they still have may be the best option for Brazilian rural producers. This is because the next crop is forecast to be very full and therefore prices should not be too high due to supply.

“The US crop has already been under pressure for corn and soybeans for several weeks, with seasonal demand and concerns over the Amazon and severe drought in northern Brazil currently weighing on prices. South America and a potentially large crop in the Midwest in 2024, so any long-term bull market is highly unlikely. Therefore, we continue to recommend selling grain and turning it into a financial market application. In your own business, that the result will be more than leaving soybeans in the warehouse,” he comments.

The important point at this point is that China is stopping purchases from Brazil and turning to the US. “Some grain shipments to rivers in northern Brazil have been halted due to a historic drought in Brazil that has caused Amazon River tributaries to drop to their lowest level in more than a century. China is shifting some grain purchases to the US due to transportation problems in Brazil,” he points out.

“According to China’s General Administration of Customs (Gacc), the country imported 7.15 million tons of soybeans in September, of which 6.88 million tons were from Brazil. In the same month last year, China imported 5.30 million tons of Brazilian soybeans. Chinese soybean imports from the US last month stood at just 1,33,692 tonnes compared to 1.15 million tonnes a year earlier.c) The rapid growth of the harvest in the United States also weighed on contracts.Operators estimate that work is already 74% complete compared to from the 62% reported by the USDA on Monday,” he concludes.