Soybean prices deepen their lows on the Chicago Board of Trade in this Wednesday’s session (1), still pressured – among other factors – by compromised US logistics interrupting US grain exports. Around 1:00 pm (GMT), prices ranged between 14.50 and 22.25 points in the main contracts, with November worth US$ 12.73 and May/22, a reference for the Brazilian crop, US$ 12. 96 per bushel.
“We are concluding the American crop and about to start the planting window in South America, so this is an accommodation market,” explains Vlamir Brandalizze, market consultant at Brandalizze Consulting. “New support is at $12.50.”
PRICES IN CHICAGO X AWARDS IN THE GULF
With casualties in Chicago and logistical concerns, soy premiums in the US Gulf have exploded in the past two days, as market analyst Eduardo Vanin, from Agrinvest Commidities explains. An increase of 75 cents on the dollar since last Friday (27).
“Trading companies are not able to offer much soy due to logistical bottlenecks, and with less supply, it became expensive, especially the increase, and the premium automatically rises. And with this increase in the premium, American soybeans became expensive and in the middle of the American harvest “, it says.
CHINA BUYING IN BRAZIL
Thus, China is already buying more soybeans in Brazil for October shipments, seeking to guarantee its supply in view of the short coverage of the processing industries. And with this spike in premiums in the US, the two products returned to show compatible prices at the peak of the off-season in Brazil and the full American harvest.
CLIMATE IN USA
Alongside this scenario, the market also feels the pressure coming from the good weather conditions expected in the coming days, allowing the completion of the American harvest, as well as the proximity of the harvest in the United States, which also leads the market to a known seasonality of low prices.
The map above shows that good rainfall is expected in good volumes over the next seven days in the Dakotas, Minnesota, Nebraska, Missouri, Iowa and southern Illinois.