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Wednesday (21) comes to an end with major upward movements for international soybean prices on the Chicago Stock Exchange (CBOT). The main prices registered positive fluctuations between 10.75 and 25.25 points at the end of the day.
May/21 was quoted at US$ 14.97 with an increase of 25.25 points, July/21 was worth US$ 14.79 with an increase of 21.75 points, September/21 was traded at US$ 13.50 with a gain of 14.25 points and November/21 had a value of US$ 13.10 with an increase of 10.75 points. (When the overnight market reopened, the first maturity (May) jumped to 15.03 US$/bu).
These indices represented increases, in relation to last Tuesday's closing, of 1.70% for May/21, 1.51% for July/21, 1.27% for September/21 and 1.05% for December/21.
According to information from the Reuters Agency, tensions in the vegetable oil and related biodiesel markets increased the strength of soybeans. CBOT's first-month soybean oil contract hit a 10-year high at 60.38 cents per pound.
“Soybean oil was clearly superior. There is still overwhelming demand and export demand, although demand is lower now than before and the market thinks the US will run out of soybeans unless demand can be rationed at high prices,” reports Price Group analyst, Jack Scoville.
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Bob Linneman from Kluis Advisors points out that grain prices had a good day this Wednesday, also keeping an eye on the weather for planting the new crop in the United States.
“Many contracts reached new highs. We can plot several upside targets on the charts as we have had a variety of strong rallies since August. The cold, dry weather for areas of the Midwest that are already dry has caused traders to consider the idea of what happens to balance sheets with yields below the trend line. We don’t need to see a season like 2012 to create an optimistic situation,” Linneman said in a note to clients.
The proximity of the May/21 contract expiries also helps to support the market. “As we get closer to the May grain contract delivery window, we will start to hear conversations about how the commercial market holds long positions so they can take delivery of physical grain. Strong base levels will encourage deliveries from farmers to elevators, not deliveries against the future,” says Linneman.
“The soybean market was in a day of positive movements, with appeal in climate, finance, China, oil and positive speculations and could try to break through US$ 15.00. He hasn't managed it yet, but he could try again this Thursday, when the climate meeting begins in the USA, where Biden will bring important support to the increased use of renewable fuels to reduce global warming in the face of a freezing spring in the northern hemisphere”, concludes the market analyst at Brandalizze Consulting, Vlamir Brandalizze.
By: Guilherme Dorigatti | Notícias Agrícolas
