Image: Pixabay
The breakout of technical levels last week prompted funds to liquidate long positions.
On the Chicago Stock Exchange, soybeans closed sharply lower, breaking the support line at $ 1500, which caused Funds to sell, according to information released by TF Agroeconomic. “The soybean contract for March23 closed at a low of 1.83% or $ 27.75 cents/bushel at $ 1490.50”, he comments.
{module Form RD}
“The May23 quote, which is already being negotiated in Brazil, closed down 2.23%, or $ 33.75 cents/bushel at $ 1479.0. The May24 price closed down 1.61% or $ 22.0 cents/bushel at $ 1344.75. The soybean meal contract for March closed down 2.22% or $ 11.1/ton short $ 487.6 and the soybean oil contract for March closed down 0.48% or $ 0.29/lb. weight at $ 59.75”, he adds.
The breakout of technical levels last week led funds to liquidate long positions, along with the arrival of Brazilian soybeans on the market, with China's preference. The Argentine crop failure, which could limit losses, has already been priced in by the market. “The market estimates the average of Wednesday's fats and oils report for a soybean crush of 189.6 mbu (5.16 MT) in January. The total range of estimates is 188.4 (5.13 MT) to 191 mbu (5.20 MT), and NOPA members have already reported that 179 mbu (4.87 MT) of soybeans were processed in January. Soybean oil stocks are estimated at 2.368 billion pounds on average”, he indicates.
“The National Bureau of Statistics (NBS) reported that per capita income growth in China slowed in 2022, to a rise of 2.9% from the previous year. In 2021, this increase had been 8.1%. In 2020, on the other hand, the advance had been smaller, at 2.1%. The numbers are in the statistical statement published today by the NBS”, he concludes.
Source: Leonardo Gottems | agrolink
