How has the market reacted to the drought in the U.S.?
terça-feira, outubro 11, 2022
Currently the drought problem in the U.S. has affected the level of the Mississippi River that is at the lowest levels in decades, similar to last year.
The Mississippi River is an important soybean and corn flow route from the U.S. interior to the U.S. Gulf export structures.
Unlike last year, when Hurricane Ida affected U.S. export structures in September and kept the pace of shipments in the Gulf low in October and November, this year's low river level brings concern to exporters.
In the case of soybeans, the market had an impact on the closest shipment export premiums here in Brazil, which directly affects spot soybean prices.
Over the past two weeks, premiums have been up 40%, affected by the more immediate concern of shipments in the Gulf, as well as rising soybean margins in China due to heated demand for bran and the return of Chinese to the market after the Golden Week holiday last week.
However, AgResource's information is that the lockpoints have been released due to the management of some damming points, which should bring some reassurance to the market regarding new blockades in the next 2 to 3 weeks.
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