On the Chicago Stock Exchange, the soy closed lower, looking at what is happening in Argentina, according to information released by TF Agroeconomic. “The soybean contract for January24, the next date negotiated in the USA, closed at a low of -1.21 %, or $ -16.25 cents/bushel at $ 1307.50”, he comments.
“The price for May24, a reference for the Brazilian harvest, closed at a low of -1.16 % or $ -15.75 cents/bushel at $ 1340.25. The January soybean meal contract closed down -1.97 % or $ -8.1 ton short at $ 402.2 and the soy oil for December it closed at a low of -1.17%ou$-0.59/pound at $ 49.83”, he adds.
This is because Argentina was the biggest weight on commodity prices in general this mid-week. “The strong devaluation of the Argentine Peso, which could make your product more competitive on the international market, raised a warning signal for the market. Argentina, a major exporter of soy by-products, caused soybean meal and oil to crash in Chicago on Wednesday. This is recommended by experts.
“In addition, the advance of the harvest at 65% according to the Rosario Stock Exchange also put pressure on the price. The rains recorded in November were positive for eastern Argentina, however, the western part still lacks water at this stage of planting. Production is still projected at 50 million tons. Value far above recent seasons. Fears about African swine fever in Asia also put pressure on the price, with the possibility of China reducing demand for grains”, concludes the agroeconomic consultancy this mid-week.
Source: Leonardo Gottems | agrolink
