Soybean News 02/07/2022

USDA announced this morning the sales to unknown of:

249,000 mt of old crop soybeans

258,000 mts of new crop soybeans

The Brazilian currency is very strong today versus the dollar, making US soybeans more competitive in the world market.

Total Farm Marketing reported at 7:02 this morning that StoneX cut 30 million mt off South American soybean production. I can find no collaboration, not even from Reuters’ World Agricultural Reporter, Karen Braun.

Gaurav Kochar, a Logistical Manager for agricultural commodities, reported ten hours ago:

More than 110 ships have been chartered on a preliminary basis to load crops in the Pacific Northwest. Is that a lot more ships than normal? I don't know.

Most of the fundamental news appears to centered on weather, too wet in Brazil where they are trying to combine beans (Rondonópolis, Mato Grosso area) and dry weather the next two weeks where it has been dry: Santa Maria, Cordoba, and Salto. Take a closer look at the rain day chart below, which is a partial of the full rain day chart we sent this morning. Ten days of rain for Rondonópolis as it has been most of the the past three months and not nearly enough rain in the south as it has been for the past three months.

If there is not a a very serious round of profit-taking before the USDA Report on Wednesday, it will be the first time in my life it does not happen after such a run.

It is a La Niña, Folks. Perfectly normal La Niña weather. As we reported the past two weeks, this La Niña episode is dying and its impact on world weather will be over in about 40 days.

You can read all about La Niña and ENSO at:

https://www.wrightonthemarket.com/post/cause-and-effect-of-el-ni%C3%B1o-and-la-ni%C3%B1a-episodes-part-1