After a strong rise earlier in the day, prices of soy began to stabilize on the Chicago Stock Exchange late Wednesday morning (11). At around 11:20 am (Brasília time), prices were down 0.25 to 0.50 points, with the November contract trading at US$ 9.96 and the March contract at US$ 10.30 per bushel. The behavior was similar in the soybean meal and oil markets on the CBOT.
Volatility has been a notable feature of the soybean market this week, with futures settling ahead of the release of new USDA figures, scheduled for September 12 at 1:00 p.m. (Brasília time).
Factors Influencing the Soybean Market
Analysts and market consultants attribute the recent gains to adverse weather conditions, such as dry weather in the U.S. and high temperatures and drought in Brazil, which are delaying the start of planting in some regions. In addition, increased demand from the U.S. has also contributed to the price hikes. However, Agrinvest Commodities warned that American soybeans are becoming more expensive, especially for buyers such as China.
“Offers in the Gulf and PNW have risen sharply and rapidly. The Chinese are already saying there is no room for these increases. Premiums in both regions have risen more than 25 cents per bushel from their lows,” the consultancy explained. “In Brazil, premiums for old crop have also risen, following business in the US.”
Expectations for the Coming Days
In addition to the release of the USDA figures, the weekly export sales report, which will be updated tomorrow, is being closely monitored by traders. So far, this is already known information that has been priced in by the market, while waiting for the official data update.
Source: Carla Mendes | Notícias Agrícolas
