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The soybean market continues to rise on the Chicago Stock Exchange this Monday morning (12). Oilseed futures, around 7:50 am (Brasília time), rose from 3.75 to 8.25 points in the most traded contracts, with July worth US$ 13.90 and November, US$ 12.12 per bushel. The climate in the USA remains in the spotlight.
The rains over the weekend were only occasional, with low volumes and still far below the needs of important production areas in the Corn Belt.
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“Forecasts continue with below-normal rainfall. June repeats the same pattern as May and April. The market will add a climate premium”, says the general director of Grupo Labhoro, Ginaldo Sousa. “Weekend with below-required rainfall. Saturday saw scattered light rain in the Dakotas, Nebraska, Kansas and Oklahoma, with the rest of the Corn Belt completely dry. On Sunday, rainfall of up to 25 mm in central areas, including Iowa, Missouri, South and North Dakota, Kansas, southern Minnesota, Arkansas and Louisiana, the rest of the corridor, dry overall.”
The 2023/24 North American planting season is practically complete and adequate humidity levels are now crucial to ensuring adequate crop development. Therefore, waiting for precipitation, the market expects that in the weekly harvest monitoring bulletin to be released by the USDA (United States Department of Agriculture) this Monday, there will be a decline in the quality of the fields.
“Several areas of the Corn Belt are deficient, for example, central and northern Illinois and eastern Iowa, there are regions that have not rained more than 20% of normal”, adds Sousa.
In addition to the climate in the USA, traders also continue to monitor little progress in negotiations between Russia and Ukraine, which keeps the agreement for grain exports compromised, keeping the supply of both corn and wheat limited, which also provides support to prices. This morning, corn rose almost 2% on the CBOT.
Also pay attention to finance and the behavior of demand, especially in China, impacting the behavior of prices.
Source: Carla Mendes | Notícias Agrícolas
