Soy loses more than 1% on the Chicago Stock Exchange with planting in the USA and concerns about demand

Posted by Marina

The grain market on the Chicago Stock Exchange yields more than 1% among soybean, corn and wheat futures, with corn leading the losses. Around 7:30 am (Brasília time), oilseed prices lost between 10.25 and 11.75 points in the main maturities, with May being quoted at $ 8.35 and August at $ 8.39 per bushel.

The biggest pressure, according to analysts and consultants, came from the concern with the demand for the North American product, mainly in the face of a new round of tension between China and the United States.

Last Thursday (30), US President Donald Trump said that phase one of the agreement with the Chinese would have been put in the background against the problems caused by the coronavirus. More than that, Trump still threatened the Asian nation with the possibility of more tariffs.

In the trading session on Friday, May 1, the impact of the declarations was quite limited, with traders even receiving the news that China would have bought another 264 thousand tons in the North American market, with volumes for 2019/20 and 2020/21.

As analysts at the international consultancy Allendale, Inc. explain, there is a great concern in the international market also with the North American domestic demand due to the closing of some refrigeration plants also due to Covid-19.

"Traders will continue to monitor the spread of the virus as well as any further movement and escalation of tensions between China and the United States," says Allendale.

Likewise, the market is still attentive to the advancement of planting the 2020/21 harvest in the USA, with the new weekly crop monitoring bulletin that the USDA (United States Department of Agriculture) brings at the end of the day.

Expectations are that oilseed sowing will be between 16% and 18% of the estimated area, against 8% last week. For corn, between 45% and 48% are expected. The climate has favored the smooth running of fieldwork and helps to weigh in on prices.

Complementing the scenario of pressure on prices, there are still new lows being observed in oil, which falls more than 5% in New York, with the barrel being quoted at US $ 18.70.

Source: Notícias Agrícolas