Soybean futures prices rallied last week and tested new highs, with values Thursday reaching $14.43 per bushel. However, prices could not hold and subsequently ended the day below the previous high of $14.36 per bushel on Jan. 14.
Soybean harvest delays in South America continue as Brazil dealt with heavy rains for most of last week. Argentina has remained drier and quite hot, but some local crop estimates are putting production at or above USDA’s forecast of 48 MMT. This would be impressive considering the less-than-ideal weather last fall.
Export prices in Brazil and Argentina are now some $22 to $25 per ton cheaper than the U.S. Gulf. China seems to be patiently waiting for harvest in Brazil to catch up as its purchases of U.S. soybeans have been nearly nonexistent recently. A small cancellation last week of 1.7 million bushels helped pressure prices some.