The price of soybeans on the Chicago Grain Exchange recorded a drop of 18.00 points on Friday (17.05) in the July/19 contract, closing at US$ 8.2175 per bushel. The other highlighted commodity maturities on the CBOT also closed the session with devaluations between 17.50 and 18.25 points.
The main futures contracts closed the week with a sharp drop in the North American soybean market, when optimism about negotiations to end the Trade War was diluted. “The renewal of tensions between the United States and China had a strong impact on soybean prices. On the one hand, the US imposed restrictions on doing business with Huawei, the largest Chinese cell phone company.
On the other hand, China responded by announcing a lack of interest in trade talks, given the increase in pressure”, points out analyst Luiz Fernando Pacheco, from T&F Consultoria Agroeconomia.
According to ARC Mercosul, after a highly volatile week, prices in Chicago ended with soybeans and corn in opposite directions: “The speculative focus continues on climate problems, worsening the delay in North American planting. Furthermore, market operators understand that the ideal corn planting window is close to closing, and the drift towards soybean cultivation could be aggressive.”
ARC recalls that, even with this crop variation, the climate maps for the beginning of June remain harmful: “The soybean window lasts for another 40 days, however the oilseed sown in June is already beginning to develop with a reduced production ceiling due to the lack of differentiation in light incidence and warmer temperatures during the vegetative phases. A production limit for the US harvest is already being defined”, conclude the ARC Mercosul analysts.
Post | Marina Carvejani
Author | Leonardo Gottems
Source | agrolink
