Soybean prices start the week at Chicago Stock Exchange operating in decline this Monday (5). Around 7:25 am (Brasília time), prices lost between 6.50 and 8 points in the main maturities, with July being quoted at US$ 10.50 and September at US$ 10.21 per bushel.
The week also starts negatively for wheat and corn prices on the CBOT, as well as oil, which lost more than 1.4% and contributed to the pressure on grain futures.
The weather in the American Midwest continues to be a top concern for traders. The trade war between China and the United States is also on the radar. In addition, recent news about the conflict between Russia and Ukraine has gained ground in market analysis in recent days.
Geopolitics and climate gain prominence
“Ukraine attacked the port of NOVOROSSIIK, damaging an important terminal for shipping agricultural products from Russia. “Politically, this is a very important fact. It could spark new disagreements between the countries. Russia has declared a state of emergency,” said Ginaldo Sousa, CEO of the Labhoro Group.
He also explains that the trade war is likely to continue for some time. The United States and China are still not fully aware of the damage that the tariffs are causing. This economic impact needs to be more evident for negotiations to move forward.
Regarding the weather in the US, Sousa states that the weekend was drier in the central and western regions of the Corn Belt. He believes that the progress of planting should reflect data that is more consistent with the climate reality. Corn already shows a planted area of over 50%. Forecasts for the next 10 days indicate dry weather throughout the Corn Belt, with a tendency for it to continue and temperatures to rise. This drier weather should further accelerate the pace of planting. However, he warns: it is important to focus on monitoring the weather more frequently and carefully observe the ideal windows for finishing planting, both for corn and soybeans.
Source: Carla Mendes | Notícias Agrícolas
