Brazilian soybean producers are, in a large part of the country, frustrated with the negative results of the beginning of the harvest. At the same time, it continues to keep an eye on the market, keeping an eye on the Chicago Stock Exchange.
This week, China approved the expansion of the cultivation of more transgenic crops in the country. In the short term, the decision will not significantly impact Brazilian exports. However, the world's largest consumer is putting into practice its plan to depend less on imports. Therefore, it intends to slow down purchases in the 1st quarter to the lowest level in four years.
Argentina plays a significant role in soybean meal production. With most crops under regular conditions, the country should regain its position as the largest exporter of this by-product. As a result, there may be a reduction in demand for these products in other countries, resulting, therefore, in lower consumption.
Worst productivity in Mato Grosso
According to data from the Mato Grosso Institute of Agricultural Economics (Imea), the state of Mato Grosso estimates the worst soybean productivity in 15 years. The state already presents, according to the Institute, a drop of approximately 13.9% in the productivity of the initial harvest.
Considering this entire macro scenario, it is possible that soybeans in Chicago will have another negative week, with the Brazilian physical market heading in the same direction.