Commerzbank AG predicts that the price rise for soy, which has recently its maximum, may soon stop. Such prediction has resulted from higher production in South America. In 2011-12 MY the yield of soy in Brazil has amounted to 65.5 mln. tons. This season the yield of the culture is expected to amount to 81-82 mln. tons. Last season severe drought did harm to oil-bearing and grain crops.
According to analysts, the lack of the product has been fully assessed at stock exchange, and further price rise is not expected. This season, in terms of soy production, Brazil may be ahead of the culture’s largest manufacturer – the USA.
Price for soy has recently broken another record – 17.7125 dollars per bushel (27.3 kg). This year the cost of oil-bearing crops has increased by 45 percent, as US production regions were suffering from drought.
The chart below reflects the current state of affairs in the market of soybeans: its future has recently finished mid-term uptrend, and there are signs of possible formation of a five-wave descending structure. Fourth wave may be expected in short-term, the critical point of which will be set at 1770, and the fifth down-wave is to be formed below point 1720.
