Soybean futures eased to near $10.2 per bushel, retreating from recent three-month highs of $10.6 per bushel. The earlier rally was driven by tighter U.S. supply forecasts and speculation over potential changes in U.S. biofuel policy. However, profit-taking and a record U.S. soy crush of 206.6 million bushels in December, exceeding trade expectations and rising 5.8% year-over-year, contributed to the price decline. Additional downward pressure came from mounting evidence of a record soybean harvest in Brazil. Safras & Mercado raised its 2024/25 Brazilian soybean crop forecast, citing favorable weather, particularly in Mato Grosso, where production could reach 47.7 million tons due to high crop quality. Similarly, Brazilian crop agency Conab slightly lifted its forecast to 166.32 million metric tonnes for the 2024/25 season. In contrast, Argentina’s 2024/25 soybean estimate was cut by 1 million tons to 52 million as heat and limited rainfall continued to stress crops.
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