​Soybean market outlook

The climate has changed in the United States. Heavy rains this May. And this contributed to the increase in grain prices on the Chicago Stock Exchange.

Brazilian producers could not expect better news than this: rising soybean and corn prices.

There was frost on wheat, intense cold on soybeans and planted corn. I received photographs showing vast flooded regions in the soybean and corn belt, called cornbelt.

I do not believe that this increase at the beginning of May will continue, as there is a harmonious position today between supply, demand and stocks. Global analysts believe it will be a good year for both buyers and sellers.

In any case, this climate effect in the largest grain production belt in the world has impacted prices and promises May as a great month for closing soybean positions, with 93% of the acquisition already made.

To Brazil, with harvest record and prices improving, prospects become even more positive, which already suggests a similarly positive new planting for the year 2017/2018.