Soybeans were hammered from the opening yesterday as Argentina is trying to motivate growers to sell their beans by offering a better exchange rate through September 30th. We thought this was a non-event because it does not change the supply nor the demand for soybeans. It turned out to be a big deal for at least one day. Argentine farmers have been hanging onto their beans to hedge the 60+% inflation. Other analysts say beans were lower due to China’s additional COVID lock-downs.
800,000 mt of soybean sales were made on Monday, highest daily volume since early 2017.
700,000 mt traded yesterday. It is estimated that 13.3 million mt of old crop beans are yet to be sold. It could keep a lid on beans for a week or two, but it does not change the S&D big picture.
IHS Markit updated their yield estimates to 171.6 bu/ac corn (USDA 175.5) and for soybeans at 51.3 bu/ac (USDA 51.9).