Soybean prices soar in Chicago on demand for biodiesel

Preços da soja disparam em Chicago com demanda por biodiesel
Image: Pixabay

The soybean market has been showing variations, reflecting the climatic and economic conditions both internationally and in Brazil. Grão Direto recently released a detailed analysis of the behavior of the soybean market. soy, highlighting crucial points for producers and investors.

According to Grão Direto's analysis, the North American soybean harvest is developing satisfactorily. The latest USDA report indicates that 20% of soybean crops are in the flowering phase, with 3% already forming pods. This development is promising, indicating a robust harvest. The week was also marked by a significant increase in soybean oil prices, driven by speculation of greater demand for biodiesel production in the United States and by the rise in the Palm oil in Malaysia.

The dollar, after reaching its highest level in two and a half years (R$5.70), fell for a week due to promises to comply with the fiscal framework in Brazil. This drop brought relief to the markets. In Chicago, the soybean contract for July 2024 closed at U$11.89 per bushel, up 3.30%. In the Brazilian physical market, movements varied depending on the region, with a 2.33% drop in the dollar (R$5.49) influencing prices. The contract maturing in March 2025 also rose, closing at U$11.50 per bushel, up 2.31%.

Market outlook

An update on global supply and demand figures is expected next Friday (12), according to the USDA's monthly report. The forecast is optimistic regarding the North American harvest, with an estimated production of over 120 million tons. No changes are expected in Brazilian and Argentine production expectations. On the demand side, there may be slight adjustments, reflecting the low demand for North American soybeans.

Furthermore, in Brazil, soybean exports reached 15.4 million tons in June, a historic record for the month. From January to June, exports totaled 64.1 million tons, surpassing the same period last year. The devaluation of the real against the dollar boosted these exports, making Brazilian soybeans more competitive in the international market. However, this scenario may change in the coming months with the arrival of the corn harvest.

China, the largest buyer of Brazilian soybeans, is expected to import record volumes in July, driven by low prices and the possible return of Donald Trump to the US presidency, which could reignite trade tensions. As the US harvest approaches, international demand is expected to shift to the US crop, potentially strengthening Chicago prices and pushing up prices in the coming months.

Market attentive to weather forecasts

Despite the favorable weather conditions so far, the market is keeping an eye on the weather forecast. Scattered rainfall is expected in Illinois, Missouri, Kansas, Nebraska, and North and South Dakota. Although this scenario is not expected to have a significant impact in the short term, continued adverse weather conditions could result in market volatility.

Prices in Chicago have struggled to stay below $11 per bushel. However, there are no concrete fundamentals to justify a significant appreciation at the moment. In addition, the dollar should continue to seek lower levels, putting pressure on Brazilian prices.

Based on Grão Direto’s analysis, producers and investors should stay tuned to upcoming market updates and weather conditions to make informed and strategic decisions.

Source: Aline Merladete | agrolink

Facebook
twitter
LinkedIn

Aboissa supports

Stay up to date with news
and the best opportunities in
agribusiness – sign up now!

Asia

Saudi Arabia

Bangladesh

China

South Korea

United Arab Emirates

Philippines

Hong Kong

India

Indonesia

Iraq

Jordan

Lebanon

Malaysia

Oman

qatar

singapore

Türkiye

Vietnam

America

Argentina

Bolivia

Brazil

Canada

Chile

Colombia

Costa Rica

Cuba

Ecuador

U.S

Guatemala

british virgin islands

Mexico

Nicaragua

Panama

Paraguay

Peru

Dominican Republic

Suriname

Uruguay

Venezuela

Africa

South Africa

Angola

Algeria

Cameroon

Costa do Marfim

Egypt

Ghana

Mauricio Islands

Liberia

Morocco

Nigeria

Kenya

Senegal

Sierra Leone

Sudan

Togo

Tunisia

Europe

Albania

Germany

Belgium

Bulgaria

Cyprus

Spain

Estonia

Finland

France

England

Ireland

Italy

Lithuania

Poland

Portugal

Romania

Russia

Serbia

Sweden

Switzerland

Türkiye

Ukraine

Oceania

Australia

New Zealand

Request a quote!

Fill out the form and get support for your business needs.
Our experts are ready to offer customized solutions.

*We are currently not working with intermediaries.

By providing my data, I agree with the Privacy Policy.