Soy: overview of the week - 13/01/2023

The soybean market this week was marked by increases on the Chicago Stock Exchange (CBOT), recording notable increases, as last Thursday (12/1), taking March to US$ 15,06 and May to US$ 15,08, XNUMX per bushel.

Friday (13/1) began with CBOT soybean futures continuing their upward movement, with March contracts approaching US$ 15,25 and May, US$ 15,24 per bushel.

Traders' eyes remain focused on the weather conditions in South America for another week. According to the weather outlook, intense heat and dry weather should occur until February. Some maps show only two rains for Argentina, around the 13th and the 20th. This intense drought remains fuel for the high movements throughout the week.

On the other hand, excessive rainfall in some regions of Brazil has caused delays in the harvest and may even become more relevant than the Argentine drought itself for rising prices.

Furthermore, there is still market attention on the reopening of Chinese borders without restrictions due to Covid-19, as well as the most important Chinese holiday, the ''Lunar New Year''.

Record harvest in Brazil

Despite the drought harming some regions in southern Brazil, mainly Rio Grande do Sul, Conab predicts that Brazilian soybean production should reach around 152,7 million tons for the 2022/23 harvest.

This volume could represent a record of approximately 27,5 million tons more when compared to the last harvest. All this due to crops that were hit by a more severe drought the previous year and an increase in planted area that year.

By Delilah Bié, Tarken