The week starts with prices of soy on the rise on the Chicago Stock Exchange. This Monday morning (4), at around 5:50 am (Brasília time), prices rose between 10.25 and 11 points. The November contract was worth US$ 9.92 per bushel, while the May contract – a reference for the Brazilian harvest – was quoted at US$ 10.36 per bushel.
Despite this, the price increase occurs despite progress in the planting of the soybean crop in Brazil, which has gained pace in recent weeks due to more favorable weather conditions. Data from Pátria Agronegócios indicate that the planted area reached 59.2% until last Friday (1), surpassing the same period last year.
“The week saw rapid progress in field work, with planting advancing beyond the 2023 record. In particular, progress in Goiás, São Paulo and Mato Grosso do Sul throughout the week stands out,” the consultancy reported.
Favorable weather and US elections boost soybean market
Weather forecasts indicate good rainfall across almost the entire country, especially in producing regions, over the next 10 days.
In addition to the weather and planting in Brazil, traders' focus this week is on the presidential elections in the United States, considered the most important of the year, with a fierce dispute between Donald Trump and Kamala Harris.
According to some analysts, Trump’s victory could boost prices and create a small bubble on the CBOT (Chicago Stock Exchange), but they do not guarantee that this will happen and, even if it does, they believe that this bubble will be short-lived,” says Ginlado Sousa, CEO of Grupo Labhoro. “If Trump is elected, many expect him to increase tariffs on China, as he did previously. This move could displease the Chinese, who could prioritize South American products, which could affect the sustainability of prices on the CBOT,” he adds.
Also on Monday, the rise of more than 1% in bran and wheat futures in Chicago supported the soybean market. Soybean oil and corn remained stable, but on the positive side of the table. The increase of more than 2% in the price of oil also contributed to the bullish scenario.
Source: Carla Mendes | Notícias Agrícolas
