The offer of the Soy and the corn It has strengthened in 2021 due to factors such as large crops in the United States, the weather and signs of a slowdown in purchases from China.
Growing stocks indicate that prices for crops, as well as other staples like sugar and coffee, may have peaked after the surge, according to a Reuters poll of farmers, brokers and analysts. caused by the pandemic.
Recently, the United Nations reported that food skyrocketed to the highest in the last decade. This led to lower supply and strong global demand for crops in the last 18 months driving up their prices and causing fears of shortages.
A drop in soybeans and corn would reduce the cost of feeding livestock for meat production, the prices of which have been out of reach for many during the COVID-19 pandemic. However, the fall could threaten the earnings of the farmers when seed and fertilizer companies have raised the value of inputs.
However, the drought that still plagues northwest USA and Canada could continue high prices for oats, wheat and rape, which means that food inflation is far from over.
The soybean market is the one that is under the most pressure, as increased supply and concerns about the cooling of Chinese demand are driving prices down.
This has forced the United States Department of Agriculture (USDA) to raise its forecast for world soybean supply every month since May for the current season. If the current forecast of 104 million 57 thousand tons is fulfilled, it would be the second largest stocks on record.
China, the world’s leading buyer of Soy, has slowed down the activity in recent months due to the low milling margins for the flour and oil with which the cattle are fed.
Analysts consulted by Reuters said that shipments to the Asian giant in 2021 could be less than 100 million tons due to the lower profitability of the pig sector and the strong increase in the use of wheat for feed.
While bad weather has cast doubt on the status of the corn crop in China, the USDA and private analysts expect the world’s second largest economy to import less grain than the previous year.
According to USDA data, the world supply of corn will increase by 4.1% in the 2021-2022 campaign.
With information from Reuters.
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Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
