Soy Trends– Will the WASDE Cover Brazilian Losses

Overall Market Sentiment:

  • Increasingly Bullish with Uncertain Ceiling: The adverse weather in Brazil has triggered a solid bullish shift. However, the lack of concrete damage estimates and the potential for mitigating factors create uncertainty about how far prices might climb.

Key Factors Affecting the Market:

    •  Attention to the precise quantification of soybean losses in Brazil is critical, and more accurate data will determine the extent and duration of the bullish momentum.
    • Argentine Weather and the US Response: Argentina’s weather and crop progress have heightened significance. Excellent conditions in Argentina could partially offset Brazil’s reduced output.
    • The US planting pace and the upcoming acreage report will dictate how quickly the US can respond to potential global supply shortages, possibly applying downward pressure on prices.
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