Sunny weather should advance the harvesting operations in Argentina in June; for some regions, where the fields are still under water, that comes but too late to limit crop losses. There, already several million tons are tainted soybeans, because the heavy harvesting machinery can not drive over the fields. That explained the rise in price for soybeans and soybean meal since early April, when heavy rain falls thwarted the incipient harvest.
The last crop estimates come only on 52 to 56.5 million tons. Previously it was assumed by 60 million tons. If the weather is now with the losses that are likely to remain limited. How the poorer quality of the harvested crop will affect the prices, remains, however, remains to be seen. The weather services predict good harvest weather for June.
The courses of the CBoT soybean meal futures had risen since the end of March by almost 50%. Meanwhile, 70% of the soybeans are harvested in Argentina but and the harvesting operations are likely to be graduating in June. The June future achieved with 419.8 USD/short ton the highest price in a front month since September 2014. Today the price falls below $ 400 analog to the spot market. End of March were the courses near the mark of 270 USD.
The Chief Economist of the rural population in Argentina said that farmers who suffered the major crop losses, have no money for the sowing of wheat. The field orders for that start in a few months.
