The price of soybeans on the Chicago Grain Exchange recorded a drop of 5.50 points on Wednesday (17/07) in the September/19 contract, closing at US$ 8.8825 per bushel. The other highlighted commodity maturities on the CBOT also closed the session with devaluations between 5.25 and 6.00 points.
The main futures contracts had another session of losses in the North American soybean market, given the forecast of rain for the next two weeks. “Rainfall over the main producing regions in the USA could result in benefits for plant development. Furthermore, the market is still aware that the USDA surprised with the announcement of an improvement of 1% on good/excellent conditions, when the average analyst predicted a drop in this percentage”, points out T&F Consultoria Agroeconomia.
ARC Mercosul highlights that the market in Chicago increased the recent losses in soybean futures, throughout the last hours of the session today: “Until the end of the morning, prices were maintained at stable levels, without any strong fluctuations. However, midday weather updates (Central Time) brought an increase in rainfall over the north of the Agricultural Belt, a region that has been most affected by drought and high temperatures. The change in pattern should occur this weekend, when the arrival of rainfall between 20-40mm accumulated should promote the recovery of scarce soil water levels”.
“ARC recalls that the quality of germination in this region has already been seriously affected by excessive rainfall, resulting in a smaller population per area this year. However, the market understands that the most serious areas are localized and that they do not yet threaten the harvest at a national level”, conclude the analysts.
Post: Marina Carvejani
Author: Leonardo Gottens
Source: agrolink
