The value of soybeans stopped its upward trend in the Chicago market and at the beginning of the week it fell 3% compared to the last price on Friday.
On this day, soybeans closed at $ 379 per ton, a drop of $ 12 compared to last Friday, which had reached the highest since March 2018.
This drop is mainly due to rain forecasts for Brazil, Together with the United States, they are the main soybean producers (for the 2019/2020 cycle it harvested 124.46 million tons) who come with climatic problems due to lack of water.
On Friday the price of the crop had reached the highest in two and a half years after the report of the DUnited States Department of Agriculture (USDA, for its acronym in English) for October that had brought surprises for soybeans.
The international body had incorporated a lower carryover from the 2019/20 campaign to 2020/21. And on the other hand, it adjusted production to 116.1 million tons in the United States, representing a cut of 1.2 million tons compared to the previous monthly report. And at the same time, the projection of foreign demand for the North American country increased by 2 million tons.
The result had been a severe cut in the 2020/21 final stock estimate, that is, the remainder, to 7.9 million tons. Thus, 4.6 million tons were located below the September estimate, which generated a surprise with an instant impact on prices. With the new setting the stock / consumption ratio, a key indicator tracked by the market, fell to 6.4%, the lowest value since the 2015/16 season.