The soy complex market continues to record significant drops this Wednesday (22) at the Chicago Stock Exchange, with oil leading the losses among products. After testing losses of almost 4%, around 12:40 pm (Brasilia), the first maturity of the derivative was 2.5% lower to be quoted at 68.62 cents per pound. In bran, the declines were more contained, while in grain they exceeded 1%, with July being quoted at US$ 16.71 and September, US$ 15.08 per bushel.
“The pressure comes from the global oil market. Strong decline in Malaysia, India and China. Palm oil is down almost 10% today, increasing the decline from the peak of the year, with an accumulated decline of almost 40%. Lower global growth and more supply. The falling oil also ends up taking strength from this market”, explains Eduardo Vanin, from Agrinvest Commodities.
In the early afternoon of this Wednesday, oil losses exceeded 3%, with WTI being quoted at US$ 106.03 per barrel, under pressure – in addition to factors linked to the macro scenario and fears of lower global growth impacting consumption and fueling risk aversion – by news of a plan brought by US President Joe Biden to reduce fuel costs for motorists.
The agricultural commodities market continues to feel the aggressive pressure coming from the financial sector. Risk aversion is growing, funds continue to undo their positions in these assets and seek safer ones in the face of so many uncertainties. Thus, they lose not only agricultural products, but commodities in general.
“Funds continue to exit positions, opting for cash-like positions such as duplicates of companies with up to 30 days (low default risk). All this in dollars. The long position in dollars continues to grow. Liquidity is cooling fast. Specialized funds in high-risk debt papers continue to report withdrawals. Inflation doesn’t stop”, says Vanin.
The fundamentals are on the radar, however, they have little strength at this point. What weighs the most is the compromised consumption in China due to the new lockdowns that put millions of people back in quarantine.