The grain market recorded another day of significant losses on the Chicago Stock Exchange this Tuesday (29), this time led by wheat, which lost more than 2% among the most traded contracts this morning. The movement in the grain also dragged the prices of corn and of the soy, the latter falling more than 1% among the main positions, with the August maturity being quoted at US$ 10.47 and the November maturity at US$ 10.27 per bushel.
Prices continue to reflect a combined scenario, especially in the US, of increased supply – with the good development of the American harvest – and a demand for American soybeans. Yesterday, the USDA (United States Department of Agriculture) brought a slight reduction in the classification of American crops, however, not enough to change the potential of the new season.
Weekly crop monitoring
The weekly crop monitoring report showed 67% of oilseed fields classified as good or excellent, compared to 68% the previous week. The market was also betting on the index being maintained. Last year, in the same period, there were only 52%. There are 25% of crops in regular condition and 8% in poor or very poor condition, while in the previous week there were 24% and 8%.
Furthermore, the report showed 77% of soybean crops in the flowering stage, against 65% the previous week. 79% last year and 74% as the average for the last five years. There are also 44% of fields in the pod formation stage, against 29% the previous week. In 2023 there were 46% and the average is 40%.
The climate in the American Midwest remains favorable and should maintain the scenario with few changes in relation to what is already known about the harvest.
Furthermore, the market is paying attention to speculations about the withdrawal of retentions on Argentine soybeans after President Javier Milei reinforced his commitment.
Source: Carla Mendes | Notícias Agrícolas
