According to TF Agroeconômica, the market for soy on the Chicago Board of Trade closed lower on Wednesday, reflecting the unfavorable scenario. The August 2024 soybean contract closed down 0.80%, at $1,020.25 per bushel.
The September 2024 contract fell 0.86%, or $8.75 cents per bushel, to close at $1,005.25. The September soybean meal contract fell 1.98% ($6.9/ton) to close at $340.8, and soybean oil rose 1.38% to $42.25.
Analysis of the decline recorded in today's trading session indicates that soybeans traded in Chicago continue to decline, marking the lowest price for the December contract since October 2020. This downward movement is driven not only by the abundant harvest in the United States, but also by the slow pace of sales, especially to China, the largest global buyer of American soybeans.
Brazil, the United States’ main competitor in the soybean market, exported 11.25 million tons in July, an increase of 16% compared to the same month last year. This is according to data from ANEC. In addition, Brazilian exports in August are estimated to reach 7.84 million tons, representing an increase of 3% compared to the same period last year.
Meanwhile, inventories in US warehouses remain high, which is contributing to downward pressure on soybean prices. Analysts are closely monitoring the market situation, carefully monitoring the impact of these dynamics on future trading.
Source: Leonardo Gottems | agrolink
