On Tuesday, prices of Chicago Board of Trade (CBOT) soybeans went higher as harvest slowed in Brazil due to heavy rains.
Soybean futures for March delivery increased by 0.28% to $1,526.25 per metric ton in the afternoon Asian session.
According to analysts, farmers in Brazil have harvested more than 14.00 million tons of soybeans in 2022 to 2023.
However, the volume of harvests would have been greater if rains were not as strong, disrupting the works of farmers. If there were no heavy rains, harvesters would have reaped 16.00% of the soy fields in Brazil by now.
Experts expect the country to reap 152.90 million tons of soybeans this season, based on its January estimate. If so, it would be the country’s new record high.
Moreover, delayed soy harvests hold back Brazil’s second corn planting. Latest data shows 12.00% of the second corn was planted in the area, half of the 24.00% recorded last year.
Also, the farmers want the rain to stop soon in order to plant more crops. Usually, it is being done in the same soil where the soybeans are being planted.
Furthermore, US soybean deliveries have taken off last month when the world’s top exporter is still in its early stages of collecting harvests.
US and China Issue Affects Soybeans Sales
On Monday, soybeans price fell in China caused by the US shooting down a Chinese balloon.
The United States searched of the remnants of what they believe to be a surveillance balloon from the Asian nation. The US’ theory is what caused them to shoot down the balloon. Meanwhile, Beijing said it was a civilian craft that drifted away.
Over the weekend, soybeans are being pushed off because of the rising fears of US-China geopolitical tensions.
According to analysts, this crisis is not good for soybeans sale in the Asian country. Also, there are fears that the Chinese government could implement a cancellation of their existing purchases of American soybeans.