The market of soy is giving back the gains it recorded earlier and is once again moving sideways on the Chicago Stock Exchange on Monday afternoon (7), after US President Donald Trump threatened to impose additional tariffs on China of up to 50% until the 9th. It wasn't just soybeans that felt the impact, but a series of other markets, as this isn't the first news that traders have had to deal with at the beginning of this week.
Traders began to work on speculation that US President Donald Trump might consider a 90-day pause on tariffs. This pause would apply to all countries except China. Given this possibility, markets breathed a sigh of relief. However, the White House subsequently announced that this possible 90-day pause is not real. According to the statement, everything is going as planned and announced last week.
Similarly, the Federal Reserve, the US central bank, has called an emergency meeting. The meeting will be closed to the public. The aim is to discuss the tariffs imposed by the US president, which affect 57 countries.
“The reason, although not officially detailed, occurs amid the escalation in trade tensions caused by the tariffs imposed by Trump,” reports market analyst Marta Guimarães, from Royal Rural. “The sudden call increases speculation about the Fed’s role in the face of the new turbulence. Jerome Powell had already said that the central bank “does not need to act immediately,” but the market tone has changed since then.
Impacts on crop and climate in the USA
Although markets are focusing most of their energy on trade war issues, the very tense volatility imposed by Trump's tariffs still weighs heavily. However, the new US grain harvest is about to begin and also requires attention and monitoring. “Gradually, the market's focus will also shift to weather conditions in the US,” says Labhoro Group CEO Ginaldo Sousa. NASS will release its first crop progress report today at 5:00 p.m. (Brasília time).
According to the consultancy’s daily bulletin, released a short while ago, “severe flooding hit the Delta and the south-central US after storms over the weekend, with rainfall volumes between 75 and 300 mm. Arkansas, Tennessee, Kentucky, southeastern Missouri and southern Illinois have all received more than 300 mm in the last week, interrupting spring planting and flooding winter crops. About 1/3 of the spring wheat crop is at risk. NASS will release crop conditions this afternoon.”
Source: Carla Mendes | Notícias Agrícolas
