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Economists at farmdoc daily report that Brazil, Argentina and Paraguay are expecting smaller soybean harvests after severe drought since November. Conab cut Brazil's soybean crop to 4,610 million bushels, down 9.2% from last year, and soybean futures hit nine-year highs in February.
Lower soybean output from the top South American exporters tightens global soymeal and oil supplies, pushing feed protein costs higher. Buyers should expect continued upward pressure on soybean meal prices while the shortfall persists.
farmdocdaily.illinois.eduHongxia JiaoFeb 25, 2022After 1,079 past bullish weather events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.0%), and +0.9% over 20.
After 453 past bullish weather events, Soybean Meal moved a median +0.5% over 5 sessions (55% higher; middle half -1.6% to +2.7%), and +0.5% over 20.
After 184 past bullish weather events, Soybean Oil moved a median +0.3% over 5 sessions (53% higher; middle half -1.9% to +2.4%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
