Agribusiness observers have reduced their projection of the 2021-2022 soybean crop from approximately 133 million metric tons to 126 million metric tons within the last month.  Previous projections were as high as 143 million metric tons in early January before the effect of drought became evident.

The result of a lower crop will be higher feed costs for domestic livestock producers in Brazil and to the nations importing soybeans including China.  Obviously CME prices will rise further if the crop falls below 127 million metric tons.

On Tuesday February 1st the CME quotation for March delivery was up 38 cents per bushel (2.5 percent) to 1,528 cents. Concurrently soybean meal was up $17.10 per ton (3.9 percent) to $436 per ton for March delivery.

(see Weekly Commodities Report in this Edition)