The soybean market accelerated its downward movement on the Chicago Stock Exchange in the early afternoon of this Wednesday (28), following more intense losses that were also observed among oil futures, which fell almost 2% this afternoon. Thus, grain prices fell between 11.25 and 12.25 points in the main maturities, with July back at US$ 10.50 and September at US$ 10.30 per bushel.
In oil, with losses intensifying, July was traded at 48.71 cents per pound and September at 49.05 cents/lb. The oil market is still suffering from uncertainties about the biofuels market in the US and the Trump administration's new steps on the subject. Oil, according to market analysts and consultants, continues to be the most volatile vector in the soybean complex.
In addition to oil, the prices of bran and corn also fell. The cereal recorded a sharp drop and fell by more than 1%. This occurred even after having started the day in positive territory.
Day of adjustments and attention to the climate market
Part of the pressure comes from derivatives and grains. However, it is also a day of adjustments and profit-taking. This is what market consultant Vlamir Brandalizze, from Brandalizze Consulting, explains. “It is a day of liquidation, but not a trend. There is room for improvement and there is a lot to happen in the climate market, but the climate market critic is still missing.”
Currently, the market has been moving sideways, having returned from the Memorial Day holiday in the US without much new news. Still, agents remain attentive to the weather conditions in the American Midwest and the progress of the new North American harvest.
In turn, yesterday, the USDA (United States Department of Agriculture) released the planting update, which reached 76% of the area until last Sunday (25). For comparison purposes, a year ago this number was 66%, while the average for the period is 68%. In the state of Illinois, the main producer of the oilseed in the USA, 71% of the area has already been planted, compared to 69% of the historical average. In addition, the report indicates that 50% of the soybean crops have already germinated, compared to 34% the previous week, 37% last year and 40% in the multi-year average. However, the document has not yet presented data on the conditions of the crops.
Additionally, US trade relations, Chinese demand — which remains concentrated in Brazil — and the global financial scenario also remain on the market's radar.
Source: Carla Mendes | Notícias Agrícolas
