O soybean market turned around and began to decline quite significantly on the Chicago Stock Exchange in trading this Wednesday (5) on the Chicago Stock Exchange. Around 1:20 pm (Brasília time), prices fell between 10.75 and 14.25 points, returning the highs of the previous session.
“On the CBOT, profit-taking day, with the entire soybean complex operating in decline, with soybean oil standing out,” reports Pátria Agronegócios. Oil futures are down more than 1.8%, while the losses in meal are just over 0.8% in the most traded positions.
Despite the occasional movements on Wednesday, the market remains at important levels. There is significant support at US$ 10.50 and resistance at US$ 11.00 per bushel in spot. This is what Vlamir Brandalizze, market consultant at Brandalizze Consulting, explains. “The fundamentals remain positive, but today is a liquidation day,” he says. In addition, the dollar is rising again against the real, putting pressure on the oilseed market on the CBOT.
South American weather and US tariffs impact markets
Prices have also been rising in light of the weather conditions in South America. Forecasts continue to point to very hot weather and almost no rain in Rio Grande do Sul and Argentina, the effects of a new heat wave that is expected to hit the regions. Thus, expectations continue regarding the new cuts that may be suffered by the harvests in both Brazil and Argentina, mainly according to the USDA (United States Department of Agriculture) in its new monthly supply and demand bulletin that will be released next week.
Meanwhile, eyes are on Donald Trump and his tariffs. Trade relations with China have become misaligned with tariffs imposed by the US on Saturday (1) and already retaliated by the Asian nation on Tuesday (4), starting a new phase of the trade war. And so, traders are now seeking to understand how the markets will continue to react to this scenario.
Source: Carla Mendes | Notícias Agrícolas
