The production and exports of soybeans in Brazil is pointing toward record numbers for 2011 due to healthy amounts of rain strengthening the development of the plants, Bloomberg reports, citing information gleaned from Oil World.
The South American nation's soybean production could reach as high as 71 million metric tons, an increase from last year's record of 68.7 million tons. Exports of the commodity might increase 13 percent to 33 million tons, which also would mark an all-time high.
"The Brazilian soybean crop is in excellent shape almost everywhere and initial harvesting resulted in very high yields," according to Oil World.
One region, Mato Grosso do Sul, was seeing 44 percent of soybeans in the pod-filling stage, marking an increase from 37 percent during the same period last year. Soybean growers are set to harvest 24.1 million hectares, an increase from 23.5 million last year.
The crop has especially benefited from average and above-average rainfall during the past six weeks.
"Crop development has been very good in the past few weeks almost everywhere," according to Oil World.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.