Miller Magazine Issue: 135 March 2021

89 MARKET ANALYSIS MILLER / march 2021 of the crops are threshed, but due to precipitati- on, the yield forecasts remain at 133MMT. Brazi- lian farmers sold soybeans at an accelerated rate. Some Brazilian farmers, according to Bloomberg, defaulted on forward sales made several months ago when prices were lower, prompting lawsuits and potentially causing financial losses for traders. Forward contracts between traders and farmers usually do not contain a cancellation clause, but provide for a penalty that must be paid in the event of non-compliance. According to lawyers, the fine ranges from 20% to 50% of the value of the un- delivered cargo. Given that local soybean prices could double after the forward sale, farmers can earn more by paying the fine and selling the same beans on the spot market. Lack of rainfall in Argentina in the coming weeks will increase the stress on crops, but so far they are normal, so crop forecasts remain at the same level. An increase in the supply of Argentine meal amid falling corn prices puts pressure on export pri- ces for Ukrainian meal, which continues to fall in price, which affects sunflower prices. In addition, the market is waiting for the effect of the reduc- tion in the VAT rate. However, there is a shortage of sunflower seeds for processing on the Ukrainian market, and many factories will have to stop pro- duction before the season. Demand for American soybeans remains low given China's absence from the market. The price of soybeans with protein from 39% on March 1 is within 814 USD on CFR China port terms and continues to grow. There are not many offers of imported soybeans either; the next delive- FOR MORE INFORMATION PLEASE CONTACT US ON grke@mxmexhibitions.com or +971 50 887 4723 BOOK YOUR SPACE! KENYA - THE LION OF AFRICA INTERNATIONAL GRAINS & TECHNOLOGY TRADE EXHIBITION GRAINS AFRICA 2021 09 10 APRIL 2021 Sarit Expo Center - Nairobi - Kenya 11 FOR MORE INFORMATION PLEASE CONT CT US ON grke@mxmexhibitions.com or +971 50 88 4723 FOR MORE INFORMATION PLEASE CONTACT US ON grke@mxmexhibitions.com or +971 50 887 4723 INTERNATIONAL GRAINS & TECHNOLOGY TRADE EXHIBITION GRAINS AFRICA 2021 09 10 APRIL 2021 Sarit Expo Center - Nairobi - Kenya 11