Soya World Surplus

Soya farmers in Brazil, are set to boost the production to a record for a third straight year, it may jump 7.3% to 92.4 million metric tons (Conab forecast) and triggering the biggest global surplus ever.
As consequence the soybean prices have tumbled into a bear market in the past 5 months, touching a 4 year low, leaving some growers unable to find buyers.
According to Mato Grosso Institute of Agricultural Economics, to produce a 60-kilogram bag of soybeans costs nowadays about 46 reais (€14.5), however the buyers are offering 39 reais (€12.31) a bag for delivery in March, after the harvest.

Soybean Harvest

Source : Bloomberg

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