According to information from StoneX, soybeans traded in Chicago faced another week of decline, driven by the new USDA Supply & Demand report, which brought robust estimates for the US harvest. September maturity fell more than 5% in the week, closing at US¢938.75/bu.
The USDA, in turn, revised the area allocated to soybeans, increasing it by more than 400 thousand hectares, thus totaling 35.25 million hectares, and adjusted the expected yield to 3.58 tons/ha, slightly above StoneX's estimate, which is 3.54 tons/ha. Globally, the production should therefore exceed consumption by more than 25 million tons, thus reinforcing the bearish scenario in the market. Furthermore, new data on North American productivity is expected to be released this week as more agents carry out field assessments.
In addition, soybean oil also faced pressure, ending the week down on the Chicago Stock Exchange. The September/24 screen recorded, after all, a price of US$39.2/lb, representing a significant weekly drop of 6.0%. The pressure also stems from the increase in soybean production in the US, a possible reduction in the use of HVO in 2028 and an exemption for small refineries.
Palm oil held firm on robust demand and production concerns, especially in Indonesia as it prepares for B40 in 2025. However, falling soybean oil prices and lower exports from Malaysia narrowed the spread with palm oil, which fell 1.2%.
Source: Leonardo Gottems | agrolink
