You futures Soybean prices continue to rise on the Chicago Stock Exchange this Thursday (8), still reflecting the good expectations surrounding the meeting between official representatives of China and the United States this coming Saturday, May 10. At around 11:30 am (Brasília time), prices rose between 4 and 6.25 points, taking July to US$ 10.45 and September to US$ 10.21 per bushel.
Although fundamentals now have a significant impact on the oilseed market, especially due to the new US harvest currently underway, traders are paying close attention to the geopolitical scenario at this time. The market is closely monitoring political developments. There is great anticipation for the meeting that will take place this Saturday in Switzerland. The meeting will include representatives from China and the United States.
Expectations for the effects of the meeting
Expectations are that this could be the first step towards starting negotiations between the world's two largest economies. This is an agreement that will inevitably impact soybean trade between the two nations. However, after announcing the meeting, US President Donald Trump has already stated that he will not lower tariffs on China. This will happen in order to start negotiations.
Notícias Agrícolas interviewed market analysts and consultants. The goal was to understand what the markets are expecting from this meeting. We also sought to assess the effects that the meeting could have on prices. The focus is mainly on the impact next week.
After all, on Monday, May 12, traders will have to divide their energy between the news from the meeting and the new monthly supply and demand bulletin that the USDA (United States Department of Agriculture) releases at 1 pm (Brasília time).
Weekly US soybean sales within expectations also provided some support to prices in Chicago on Thursday.
Source: Carla Mendes | Notícias Agrícolas
