The international price of soybeans fell by almost 2% and is at the lowest level since the start of the year

In the last round of the month, the international soybean price it fell almost 2% and fell to its lowest level since January 3 in the Chicago market. Corn and wheat values ​​also fell.

In the case of military, with the contract set to expire in March this year, the price fell 1.83% or $10.20 and the ton traded at $547.69, where the bean came under downward pressure as the supplies recently harvested by Brazil were available on the world market. It should be remembered that the said country is going through a campaign where it could achieve a harvest of more than 130 million tonnes.

Moreover, the price of wheat of the contract with expiry in March 2023 registered a decline in today’s trading session of 0.65% or 1.65 USD and the ton was trading at 254.09 USD, and it was about the fifth consecutive decline. In a context where cereals throughout this month fell by 6.8%. Rains in parts of the U.S. winter wheat belt and optimism over an export deal between Russia and Ukraine have kept the grain market buoyed, analysts at the Rosario Stock Exchange say. under downward pressure. On top of all of this, contracts with longer expiration dates have worked profitably given the uncertainty regarding the current geopolitical conflict.

beside but, the March 2023 contract fell by 2.06% or 5.22 and the ton traded at 254.09 USD. For all that, grain futures fell 6.3% in February, which would be their biggest monthly decline since June. The impact is the good production in Brazil, a better forecast of new corn supply from the United States and the continuation of trade in the Black Sea have led the yellow grain on the negative path.

All this, while in Argentina the effects of the drought are progressing in the current agricultural season. A book prepared by economists Agustina Ciancio there Adrien Gutierrez Cabellofrom the School of Economics and Business of the University national of San Martinprojected that drought losses in soybeans, corn and wheat they are equivalent to more than 2% of the country’s gross domestic product (GDP) and the problem could get worse.

The three crops analyzed in the report currently represent 90% of local cereal production. In addition, corn is the main agricultural export product and soybeans the third. However, the soybean complex is the largest exporter and contributor of foreign exchange in the country. The report argues that between soybeans and maize the loss estimated at 7.8 and 8 million tons, respectively, and will generate negative effects on the productive system and the rest of the economy. In this regard, the study predicts that approximately $7.4 billion would cease to enter the country from the sale of soybeans and corn, which is in addition to the projected loss of $4 billion from the sale of wheat abroad.

When analyzing the loss of production of the three crops and its impact on GDP, economists pointed out that the drought “implies an economic impact of about 1.5% of GDP, both for soybeans and corn and, if we consider the reduction in wheat production, this effect increases to 2.1%. Consequently, all the industrial and service activities that are generated around these products will be strongly affected, such as the transport of goods and the services associated with agricultural activity.

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