Futures contracts of soy traded on the Chicago Stock Exchange reversed the trend and began to decline early in the afternoon this Friday (20), after a slight rise at the start of trading. At 12:20 pm (Brasília time), the most traded contracts fell between 8.25 and 9 points, with the November maturity quoted at US$ 10.04 and the May maturity at US$ 10.51 per bushel.
Soybean prices reflected losses in the soybean meal market, which also changed direction, with a drop of more than 1% in the main contracts. The December contract, for example, was trading at US$ 316.50 per short ton. Soybean oil futures also fell, although more moderately. In addition to soybeans, corn prices fell more than 1%, increasing pressure on the oilseed market.
Influence of weather conditions and external market
Investors continue to monitor weather conditions in key production regions, particularly in Brazil’s Midwest, which continues to experience hot and dry temperatures. Other factors that will impact the region include the progress of the U.S. harvest, global demand and financial market performance.
Although the recent fall in the dollar, after the Federal Reserve cut interest rates on Wednesday (18), offered some support to commodities traded on American exchanges, the currency appreciated again this Friday. At 12:40 pm (Brasília), the dollar advanced 1.2%, quoted at R$ 5.49, adding pressure on soybean futures and its derivatives.
Logistical difficulties in Argentina
Traders are also monitoring news from Argentina. Logistical difficulties due to the low level of the Paraná River and the possible reduction of retenciones (export taxes) on soybeans and derivatives. These issues could influence price behavior in the coming weeks.
Source: Carla Mendes | Notícias Agrícolas
