Why is the US Importing Soybeans??

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American buyers are capitalizing on the affordability of Brazilian soybeans by making significant purchases. Perdue Farms, a major American chicken producer, has acquired three shipments of Brazilian oilseed. These imports, if delivered, will mark the first time in years that American buyers have imported Brazilian soybeans during the winter months. Typically, the United States relies on domestic purchases during this period, given the ample inventories available after harvest. The decision to import Brazilian soybeans suggests that Brazil's crop is in better condition than expected. Moreover, Brazilian soybeans are currently priced at a discount of over $1 per bushel compared to Chicago futures. 🌱🚢🇧🇷🌽

Corteva, a leading agricultural company, experienced a record-breaking surge in its shares on Thursday. The stock saw an astonishing 27% increase before slightly retreating but still closing the day with an 8.6% gain at $54.06 per share. This remarkable rise was attributed to Corteva's optimism that continued demand from farmers will drive profitability over the next two years. The company anticipates increased demand for crops and biofuels, along with growth in the crop protection sector, contributing to higher profits. Corteva's stock had declined by nearly 20% in the previous year due to delayed farmer purchases and competition for generic pesticides in Brazil. Notably, Corteva, a publicly traded company since 2019, includes the well-known Pioneer seed brand as a significant part of its business. 🌾📈💼

In Brazil, estimates for this year's soybean crop continue to decline. According to StoneX, the Brazilian soybean crop for this season is expected to reach 150.4 million tons. This estimate reflects a 1.6% decrease compared to the firm's projection in January and a 4.8% reduction from last year's record crop. The downgrading of estimates is primarily attributed to unfavorable growing conditions. Additionally, the forecast for Brazilian soybean exports has been revised down to 93 million tons, down from the previous estimate of 95 million tons. StoneX maintains its estimate of total corn production at 124.5 million tons, consistent with the previous month's projection. 🌱🇧🇷📉

However, US soybean export sales faced a significant decline last week. Net soybean sales, amounting to 164,500 metric tons (equivalent to 6 million bushels), fell below pre-report estimates and marked a marketing-year low. This represented a sharp drop of 71% compared to the previous week and a 64% decrease from the prior four-week average. China was the largest buyer of soybeans during this period. In contrast, net corn sales reached 1.2 million metric tons (approximately 48 million bushels), showing a 26% increase from the previous week and a 58% surge from the prior four-week average, with Japan emerging as the largest buyer. Net wheat sales, at 322,500 metric tons (about 12 million bushels), were down 29% compared to the previous week and 9% from the prior four-week average. The Philippines accounted for the largest wheat purchase of the week. 🌽🌾🚢