Smaller than expected South American soybean crops likely mean more soybean export business for the U.S. in 2022.
Reuters said Oil World, an oilseeds analyst, said major soybean export business will likely get pushed toward the U.S. in June and will continue from there.
Oil World estimated that the combined soybean harvests in Brazil, Argentina, Paraguay, and Uruguay will fall to approximately 186.3 million tons. That total is 7.4 million tons below the prior season and the lowest numbers in four years.
Uncertainty about the final crop size in South America may mean their farmers will be more hesitant to sell into the market, keeping more beans in stock as a hedge against inflation.