Santa Fe Province, Argentina - September 12, 2023

Chicago soybean and corn futures fell to their lowest level in four years on Monday, below $10 and $4 a bushel, respectively, after a report on supply and demand in the US, with projections of record production. Meanwhile, wheat prices fell 1% after closing higher on Friday, although losses were limited by expectations of lower production in Russia and France.

The most active soybean contract on the Chicago Board of Trade lost 2% to USD 360.45 per ton in Chicago (USD 9.81 per bushel), while corn fell 0.3% to USD 155.11 per ton (USD 3.94 per bushel), both at their weakest levels since the end of 2020, when pandemic restriction measures hit world trade and sank commodity prices.

Soybeans are very relevant for Argentine exports, more than for the sale of the product in grain, due to the impact of its industrial derivatives, such as flour (-1.9% to USD 335.70 per ton), oil (-1.8% to USD 890.20 per ton) and waste.

“We are undoubtedly in a bearish context: the US is going to an even higher production than expected, with stock replenishment. But speculative funds were very sold and are buying back, and strongly in corn. "The increases are limited by sales from the US and Brazil, where there are still stocks and the devaluation of their currencies supports sales. Meanwhile, prices at four-year lows encourage genuine buyers and cast doubt on the increase in production in South America," said Dante Romano, professor and researcher at the Center for Agribusiness and Food at the Universidad Austral.