Soybeans traded sharply higher yesterday morning, possibly for several reasons. China announced that they are lifting quarantine requirements for travelers coming into China on Jan 8th and the weekend was a bit drier in Argentina than was expected. China refers to home grown soybeans as #1 beans and imported soybeans as #2 beans. Yesterday, #1 beans were 2 to 3 cents higher, #2 beans were 59-60 cents higher, soymeal US$5-6 higher, soy oil 241 points higher, and palm oil 253 higher. The business day in China is finished before the business day begins in the USA.
Dr. Cordonnier reports the soybean harvest started a few days earlier than usual in Mato Grosso. His soybean production estimate for Brazil was left unchanged at 151.0 million mts (USDA 152.0), but he did trim his corn estimate from last week down to 125.0 (USDA 126.0) million mts. He lowered Argentina’s bean crop to 43 million mt, down 2 million (USDA 49.5) and took his corn estimate down to 46 million mt (USDA 55). His soybean rust monitor is trending better than last year with 16 cases throughout Brazil, compared to 21 at this time last year.
President Putin signed a decree yesterday to prohibit the direct or indirect sale of any Russian oil or oil product to a country supporting a price cap on Russian crude oil or products. The decree comes into force on February 1st and is valid until July 1st.