Soybeans tumbled this week after the USDA raised its expectations for Brazil’s bean crop. Brazil is the world’s second-largest soybean grower and is America’s primary rival for soy exports onto the global market. As Brazil’s crop grows and exports rise, U.S. farmers are forced to lower prices to keep up with our southern competitors.
These concerns knocked beans to near the lowest price of the year, trading down to $9.93 per bushel Friday morning. This price drop comes at a critical time for U.S. farmers who are preparing to plant a record-breaking number of soybean acres this coming season. If prices keep dropping and producers haven’t protected their crop values, some could end up working all year just to lose money.
Data in the report added downward pressure to corn prices also as the Brazilian and Argentinian crops would add to large world supplies. Corn traded to a one-month low on Friday near $3.56 per bushel.