Soy starts December with mild highs in Chicago and sustained attention on the dollar in Brazil

Posted by Marina

Soybean prices rise slightly on the Chicago Stock Exchange on Monday (2). A new month begins for the international market and oil prices still struggle to set a direction in the face of a lack of news about relations between China and the United States.

At around 8:30 am (Brasília time), prices rose between 1.75 and 2.25 points in the main maturities, leading January to $ 8.78 and May / 20, an important reference for the Brazilian crop, the $ 9.07 per bushel.

Alongside information from the trade war, traders are divided between the completion of the US crop, with the harvest nearly finished, and the development of the new crop in South America. Weather conditions, at least so far, are favorable. in most producing regions.

"With pessimism in the absence of a new deal, traders are impressed by China's heavy US soybean purchases in recent weeks. However, they are not thrilled by this and the market is still defensive, understanding that once it begins to enter. Brazilian crop, these volumes should plummet, "explains Steve Cachia, market consultant AgroCulte and Cerealpar.


The focus of business in Brazil is on the dollar. The US currency has had days of intense highs, motivating the formation of better prices in the domestic market, good deals and offsetting the low observed in the Chicago Stock Exchange.

The US currency continues to operate above R $ 4.20 and experts still expect intense volatility towards the conclusion of 2019. "The question the market is asking is whether the Central Bank will intervene more energetically or if we will see new highs. "says Cachia.

In Brazil, as explained by market consultant Vlamir Brandalizze, from Brandalizze Consulting, attention also to domestic demand, where industries are still active in purchasing and paying better than exports in some locations.

"The industries should come to the field to supply themselves, but the ports will remain firm due to the US-China trade war, which should maintain a good presence of buyers in Brazilian ports. As we are at the peak of the off season and with little soy to to be negotiated, there is a call for maintenance and even a call for some positive price adjustments. The domestic market remains firm this coming week, "says Brandalizze.

Source: Agricultural News