The São Paulo Commodities Exchange gave in to pressure from the dollar. Today the corn suffered a fall, as reported by TF Agroeconomic.” The rises in the American currency last week had a different tone this week. This occurred due to the end of the cycle of increasing interest rates in the USA”, he commented.
The expectation that the Federal Reserve will have ended the interest rate hike cycle at its last monetary policy meeting in March therefore contributes to the recent falls. Pressure was also present on the international side, where today the Chicago Stock Exchange showed drops of up to 2.75 points in the main maturities. Given this situation, future prices undeniably closed lower: the November/23 maturity was R$ 60.49, a low of R$ -0.73 on the day, a high of R$ 0.72 for the week; January/24 closed at R$ 64.52, low of R$ -0.82 on the day, high of R$ 0.77 for the week; March/24 closed at R$ 68.41, a low of R$ -1.02 on the day and a high of R$ 1.12 for the week.
Corn closes lower in Chicago due to the advance of the harvest in the USA
On the Chicago Stock Exchange, corn closed lower with the advance of the harvest in the USA and weak demand. Therefore, “The price for December23, the main date traded in the USA, closed down -0.56 % or $ -2.75 cents/bushel at $ 485.50. The price for March24, a reference for our summer harvest, closed at a low of -0.50 % or $ -2.50 cents/bushel at $ 501.25”, he indicates.
Therefore, the advance of the harvest and the expectation of a robust harvest in the USA weighed on contracts. According to analysts interviewed by the Wall Street Journal, the USDA is expected to reduce its production and productivity estimates in the country on Thursday. Some analysts, however, believe that the report could bring higher production and yield estimates, said Steve Freed, from ADM Investor Services”, he concludes.
Source: Leonardo Gottems | agrolink
