A soy traded on the Chicago Board of Trade (CBOT) closed Friday higher, driven by the reduction in the estimate for the Argentine harvest and the increase in Chinese purchases of bran. However, according to an analysis by TF Agroeconômica, the accumulated price for the week has fallen.
In this context, the consultancy reported today that the March contract rose 0.58%, closing at US$ 1,036.00 per bushel. The May contract advanced 0.55%, closing at US$ 1,052.75.
Soybean meal for March rose 1.09% to US$$ 295.90 per short ton. On the other hand, soybean oil fell 0.39% to US$$ 46.07 per pound.
The daily increase was supported by cuts in Argentine production and the increase in Chinese demand for soybean meal, factors that helped to recover grain prices. In addition, the improvement in the exchange rate of the dollar against the real favored Brazilian exports, reducing the competitiveness of North American shipments. The recent decree of tariff reciprocity, signed by former President Donald Trump on Thursday, also helped to support prices.
Despite the advance in the last trading session of the week, the weekly balance for soybeans was negative. The March contract accumulated a drop of 1.29% (-US$ 13.50 cents/bushel). Soybean meal fell 1.82% (-US$ 5.50/short ton), while soybean oil showed a slight increase of 0.20% (+US$ 0.09/pound). The market remains attentive to Chinese demand and the weather scenario in South America, which may continue to impact prices in the coming weeks.
Source: Leonardo Gottems | agrolink
