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Soy intensifies losses in Chicago, falls more than 1%, but the dollar's surge in BR keeps prices strong

Posted by Marina

Soy futures traded on the Chicago Stock Exchange intensified their declines in trading on Thursday (20) and, around 11:10 am (Brasília time), yielded more than 1% - or registered losses of 5.75 to 8 points in main maturities. Thus, the November contract had US $ 9.06 and the March / 21 contract, US $ 9.15 per bushel.

The very strong North American weekly sales for the new crop, exceeding 2.5 million tonnes, were insufficient to stop the movement of profit taking this Thursday.

Meanwhile, in Brazil, the dollar becomes the highlight. The American currency soars this Thursday, rises more than 2% and reaches R $ 5.65, which keeps prices still very firm and sustained in Brazil.

On the other hand, the Brazilian market is empty of new business, as explained by market consultant Vlamir Brandalizze, from Brandalizze Consulting. "We continue with strong buying pressure, in the range of R $ 125 to R $ 130 in the south of Brazil in the positions commented for free lots, in the ports between R $ 128 and R $ 130 on the side of the buyers, but without sellers. soy has disappeared ", says Brandalizze.

The consultant explains that there are less than 10 million tons of soy available yet to be traded - against normally something close to 20 million for this period of the year, in addition to more than 45% of the country's new crop already being committed to commercialization.

"And now, the producer wants to focus on planting, on the climate, on what is to come and do a good job now. Thus, the week goes practically without business, only with occasional situations of new closings, explains the consultant.


Traders maintain their more cautious stance and follow the data collection of the Crop Tour ProFarmer, underway in the USA to evaluate the 2020/21 harvest.

More than that, the market also adjusts after hitting the highs in seven months and waits for new information to continue to position itself. Still, issues related to demand and climate in the Corn Belt remain in the spotlight.

According to Steve Cachia, market consultant at Cerealpar, the casualties further reveal that "traders are already anticipating that the ProFarmer crop tour may not confirm the expected losses after the passing of the Derecho storm last week."

This Thursday (20th), all commodities fall, and not only agricultural ones. "Oil is down 1%, also showing that commodity funds are in liquidation mode, either to guarantee some profits or to protect against the pessimism related to Covid and the global economy. The dollar is up slightly with an attitude of aversion at the risk of traders ", adds Cachia.

Source: Notícias Agrícolas