Soybean futures traded on the Chicago Stock Exchange intensified their declines in the trading session this Thursday (20) and, around 11:10 am (Brasília time), they lost more than 1% – or recorded losses of 5.75 to 8 points in the main salaries. Thus, the November contract had US$ 9.06 and the March/21 contract had US$ 9.15 per bushel.
The very strong North American weekly sales for the new harvest, exceeding 2.5 million tons, were insufficient to stop this Thursday's profit-taking movement.
Meanwhile, in Brazil, the dollar becomes the highlight. The American currency soars this Thursday, rising more than 2% and reaching R$ 5.65, which keeps prices still very firm and sustained in Brazil.
On the other hand, the Brazilian market appears empty of new businesses, as explained by market consultant Vlamir Brandalizze, from Brandalizze Consulting. “We continue to have strong purchasing pressure, in the range of R$ 125 to R$ 130 in the South of Brazil in the positions commented for free lots, in ports between R$ 128 and R$ 130 on the buyers side, but without sellers. Soy is gone,” says Brandalizze.
The consultant explains that there are less than 10 million tons of soy available yet to be sold – compared to normally something close to 20 million for this period of the year, in addition to more than 45% of the country's new harvest already being committed to commercialization.
“And now, the producer wants to focus on planting, the climate, what’s to come and doing a good job now. Thus, the week goes by with practically no business, only with occasional situations of new closures, explains the consultant.
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MARKET IN CHICAGO
Traders maintain their more cautious stance and follow the Crop Tour ProFarmer data collection, underway in the USA to evaluate the 2020/21 harvest.
More than that, the market is also adjusting after hitting seven-month highs and waiting for new information to continue positioning itself. Still, issues linked to demand and climate in the Corn Belt remain at the center of attention.
According to Steve Cachia, market consultant at Cerealpar, the losses also reveal that “traders are already anticipating that ProFarmer's crop tour may not confirm the losses expected after the Derecho storm passed last week”.
This Thursday (20), all commodities fall, not just agricultural ones. “Oil is down 1%, also showing that commodity funds are in liquidation mode, either to secure some profits or to protect themselves against pessimism related to Covid and the global economy. The dollar is on a slight rise with traders’ risk aversion stance”, adds Cachia.
Source: Notícias Agrícolas
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