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Grain market: soybean has the potential to drop by US$25

2020-01-13 15:03:03

You have wondered why soybeans have a low potential of US $ 25, even when the Grain market presents demand.

Why the increase in the price of corn in Grain market?

  The increase in the price of corn represents a beacon simply being favorable due to the continued retentions that they execute of said products, for the year 2019, the corn had a value of USD $ / t 130, only for the month of April, today it is history presents a considerable change, as it is outlined in US $ / t 147 which implies a profit on the order of USD $ / t 13, a totally different aspect other grains such as soybeans have a low power of US $ 25 in the Grain market

Why does soy have a low potential of US $ 25?

 Some producers indicate that it could be the droughts that have occurred recently, and have covered large areas of land, so hope is the rain that managed to fall in December and thus point to other numbers the production of this grain, which of According to Grain market, it could achieve a relevant impact with producers, as they could start up early sales so that there can be a balance compared to corn sales.

 Why is it that soy has a potential to fall of US $ 25?

 This is an estimate made according to the scale of supply and demand presented by said grain, because, currently we have a very tight situation, so that by May 2019 I had a price of US $ t 210, currently that number I present an increase of US $ t 262, but those numbers could take a considerable turn in May 2020 when it is statistically planned to have a value of US $ 237 implying a fall of 25, this is due to a couple of Relatively striking factors is that on the one hand we find a group of producers who obviously want to sell their old crops, because the loss of grain is not among their notes.

 The other option is the low supply of the oil industry, because this grain is used for the production of oil, making the price of this grain can stand firm at a single cost, so the new harvest will lead to these problems, even When the harvest has not been harvested, these inconveniences arise. This means that soy has a potential for loss of US $ 25, directly involving the Grain market.

What could be the behavior for this 2020 with soy has a potential of low of US $ 25?

The markets are relative, it may not have a greater implication, since it is already more than evident that these numbers are not going to change and the soybean has a potential of low of US $ 25. `Therefore, the conscience of the producers is what is at stake, because they are really at considerable risk when cultivating this grain at the moment, because the entry of the new crop implies an unsatisfactory supply and demand, for the whole process of cultivation, it is really a very sensitive issue, because it is not simple or comfortable to lose $ 25 for each ton of said product.

  We can conclude by affirming that these values on soybeans have a potential for loss of US $ 25 is not irreversible so far as the experts in Grain market say.

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