Current soybean price structure of $200-205 is making farmers defer grain deliveries

Argentine soybean producers are buying more silo bags compared to previous years as they seek to stockpile production due to current low prices. According to the latest update by the Buenos Aires Grains Exchange, farmers are expected to produce 49.5 million mt of soybeans this year. The current price in the spot market is between $200-205, while the July price in the Matba-Rofex market is $217. The current price structure is making farmers defer grain deliveries. Another factor that is making producers defer soybean sales is the expectation of a devaluation of the peso against the US dollar in the future.