In addition to the stock report, the week also marks the expectation for the release of the planting intention report, scheduled for the end of March
Agrolink – Aline Merladete
Published on 03/25/2024 at 5:17 pm.
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Soybean prices in the Brazilian physical market may suffer impacts – Photo: Nadia Borges
The agricultural world is paying attention to the next quarterly grain stocks report, scheduled for March 28th. This document, released every three months, plays a crucial role in the analysis of the World Agricultural Supply and Demand Estimates (WASDE) in the US, providing comprehensive estimates of grain stocks. With expectations of a significant increase in inventories on US farms due to the slow pace of producer sales, this report is awaited with great interest by market participants.
According to data from Grão Direto, in addition to the stock report, the week also marks the expectation for the release of the planting intention report, scheduled for the end of March. This annual report offers farmers’ first projections of the areas they plan to farm in the coming season. An expansion in the soybean planted area is anticipated, driven by the financial attractiveness in relation to corn. However, the scenario is subject to changes due to factors such as climate, production costs and market prices, especially during the months of April and May, marked by the beginning of planting.
Meanwhile, Chinese demand is regaining strength in agricultural markets, directly impacting soybean price trends. An immediate reaction to the growth in demand was observed, with a reduction in short positions in the funds. However, in the longer term, factors such as weather conditions, global supply and demand, and trade policies will continue to influence the trajectory of soybean prices in the coming months.
With expectations of a negative week in Chicago, soybean prices in the Brazilian physical market may suffer proportional impacts due to stocks. This trend reflects the global interconnectedness of agricultural markets and the sensitivity of prices to international market conditions.
