Sumitomo Chemical submits registration applications for new herbicide Rapidicil
The product belongs to a class of compounds known as protoporphyrinogen oxidase (PPO) inhibitors.
Market analysts from several consultancies assess that, in addition to the factors already known, the market is concerned about the climate in the USA, which is experiencing drought in many producing regions, meaning difficulties in starting the planting of the new soybean crop. Last year, at this time, planting was already reaching 3% of the area.
Furthermore, the war between Russia and Ukraine has been worsening, a fact that is increasing the price of oil, pushing up soybean oil prices, which once again surpassed 80 cents per pound this week, considering the first month quoted, according to the Ministry of Agriculture, Livestock and Supply (MAPA). Even so, soybean crushing in the US rose in March, reaching its highest level for the third month of the year, while soybean oil stocks fell to their lowest level since November, according to data from ABIOVE (National Association of Processors of Oilseeds). North American milling industries crushed 10,1% above that recorded in February and 2,1% above that processed in March 2021, reaching a total of 4,95 million tons last month, according to the USDA (United States Department of Agriculture).
“And within this scenario, it is important for both producers and the Brazilian soybean processing industry to observe the movements of markets with greater demand”, highlighted Enrique Traver, CEO of Copagri. Analysts see that what is guaranteed is the high profitability of soybeans, which is around 45%. For Enrique Traver, it is the detail that will make the difference. “It is important to take into account, for example, production costs raised by entities such as DERAL (PR), FARSUL (RS) and IMEA (MT), compared with prices paid to producers in producing states. Well, this is a considerable profit anywhere in the world, with or without war. It is up to the farmer now to decide whether it is enough and sell or whether he will take the risk and wait to sell in the hope of getting a higher value”, he assesses.
The CEO of Copagri also considers that, this week, eyes are on falling oil and vegetable oils and could spread weakness to soybeans. “In Indonesia, for example, the blockade of palm oil exports only partially affects it. Furthermore, despite the sales to China announced by the USDA, there are fears of lower demand from the Asian giant given the confinement measures in several cities due to outbreaks of Covid cases”, explains Traver.
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