The futures of oil traded on the Chicago Stock Exchange remain highly volatile. After rising by more than 3% in the previous session, prices fell by more than 3% in trading this Wednesday (27), reflecting the uncertainties that permeate the market. At around 12:30 pm (Brasília time), the December contract was quoted at 41.42 cents per pound.
"THE oil share remains volatile. Yesterday, the market was a buyer of oil and a seller of bran. Today, the opposite is true,” comment analysts in the sector. “Oil fundamentals are constructive, but uncertainties about Biden’s programs continue to weigh.”
Movement in oil and meal contracts
Early this afternoon, the most traded oil contracts showed a recovery of more than 1%, with the December contract quoted at US$ 291.30 and the March contract at US$ 300.30 per short ton.
On the other hand, soybean meal is recording gains of over 1% among the most traded contracts. In addition to the volatility in the vegetable oils complex, discussions surrounding Europe's anti-deforestation law (EUDR) continue to influence the market.
“The EUDR saga is not over yet. The European Parliament needs to vote on pending amendments. If the deadline is exceeded, demand for bran could shift to the US,” the consultancy highlights.
Soybeans: Market seeks direction
Meanwhile, soybean futures showed timid movement, with gains between 1.50 and 4 points. The January contract was quoted at US$ 9.87 per bushel, while the May contract, a reference for the Brazilian harvest, was quoted at US$ 10.10 per bushel.
The market remains attentive to the fundamentals:
- Offer: The new South American harvest continues to develop well, which maintains some pressure on prices.
- Demand: There is support for new Chinese purchases. According to industry sources, Chinese state-owned Sinograin has purchased soybeans from the US, with around five vessels expected for February. Commercial crushers continue to buy from Brazil for delivery between January and February, as well as longer months.
Global impacts on the soybean complex
Uncertainties surrounding U.S. government programs and European discussions on the EUDR create a scenario of global volatility. Market attention remains divided between supply and demand issues, with significant implications for soybean complex prices.
Source: Carla Mendes | Notícias Agrícolas
