Soybean meal continues to rise sharply, how long can the impact of floods in Brazil last?

Golden Ten Futures, May 6, the main contract of soybean meal ran strongly in the night, rising more than 2%. New Lake Futures said that flooding in the southern region of Brazil, the top soybean exporter, affected the unharvested soybean crop. After torrential rains flooded farmland, the outlook for soybean harvests in Rio Grande do Sul is deteriorating. There are still about a quarter of soybeans that have not been harvested. Market participants estimate that 70% to 80% of soybeans in the hardest-hit areas will be damaged. The recent bad weather may reduce the state's total production by 10% to 15%. The US bean market is still in the process of bottom-finding and bottom-building, and the cost logic mentioned before is always valid. Even meal funds are just around the corner, and in the current situation, fluctuations can be easily amplified after a period of trading. In terms of operation, in the second quarter, we began to pay close attention to the weather conditions in the main producing areas of the Midwest of the United States. Meidou is in a low position below 1200, and is more sensitive to the weather. We should not be too bearish on Meidou, but only look at adjustments or bottom shocks. Even the meal is more opportunistic to intervene.