Brazilian soybean production fell (-1M ton) but by less than expected (-3M ton). However, the country’s exports were increased by 3M ton at the expense of crush and ending stocks.
In turn, Chinese imports were increased by the same 3M ton. US and Argentina’s balances were kept untouched.
In general, the report did not provide the market, with enough evidence to move either way, in particular spec funds, which are currently very short.
Still, even though it was not the most exciting report, it wasn’t without relevant changes either. Nevertheless, prices failed to move significantly. Why?
The market is likely in “wait mode” for March 28’s Prospective Planting report, when US farmers will have a say on how much grains they intend to plant.