Soybean prices continue to operate lower on the Chicago Stock Exchange this Tuesday (28). Oilseed futures, around 8:50 am (Brasília time), lost between 7.50 and 8 points in the main contracts, taking March to US$ 8.89 and May to US$ 9.03 per bushel.
The market, which had already been under pressure due to the lack of demand from China in the USA, is now feeling the weight of the spread of the coronavirus, which is impacting the entire international financial market. The number of deaths rose to 106 and the number of confirmed cases exceeded 4,500.
“Traders are trying to gauge how the coronavirus contagion will affect economies around the world. If we continue to see new cases emerging in the US, it is likely that the markets will not deal with this news very favorably”, said, in a note, Al Kluis, international consultant at Kluis Advisors.
The oilseed is still under pressure due to the arrival of new supply from South America, with the Brazilian harvest evolving. According to AgRural, field work has already been completed in 4.2% of the area. The consultancy's projection is for a harvest of 123.9 million tons.
“Soybean prices are approaching the lows recorded in early December. The indicators approach the same levels observed when this minimum level was reached. Any pressure in external markets can keep bulls on the market margins”, he says.
Source: Agricultural News
