Soybean futures lost more than 3.5% – or almost 60 points – on the Chicago Stock Exchange in the early afternoon of this Thursday (23), further intensifying their downward movement, which started this Tuesday, when the north futures market -American resumed business after the US holiday. Thus, the first contracts were already working below US$ 16.00 per bushel, with July being quoted at US$ 15.95 and August at US$ 15.08 per bushel.
Further on, losses led positions to operate with less than US$ 15.00, with September being quoted at US$ 14.38 and November at US$ 14.17 per bushel.
Once again the pressure of financial tensions weighs aggressively on the commodity market. Thus, in Chicago, it did not only yield soybeans, but also wheat and corn in an expressive way. Among soybean derivatives, the drops also exceeded 3%, taking the first position of bran to US$ 387.10 per short ton and oil to 64.96 cents per pound.
Risk aversion is still very strong in the face of global concerns about China’s zero tolerance policy against Covid-19, the recession of the global economy, the inflationary process and the way all this impacts on the consumption of commodities across the planet. .
“Cold and wet weather in the Midwest over the weekend, concerns about an impending recession and uncertainty about the future prospects for Chinese demand knocked soybean markets down,” says Grupo Labhoro’s managing director Ginaldo Sousa.
Complementing the analysis, Eduardo Vanin, market analyst at Agrinvest Commodities, details the declines seen in other commodities, which also reflect fears of a recession, which is directly at the heart of the consumption of raw materials.
“The sourness continues. Industrial metals and energy lead the declines. Copper futures are down 21% from their March highs, a very synchronized downward movement with other commodities such as palm oil, wheat, zinc, aluminum, ore iron, steel traded in Shanghai, coke coal”, he says.
This Thursday alone, soybean meal fell 6% on the Dalian Stock Exchange, in China. At the reopening of business, as the Agrinvest team explains, the fall continues and, thus, losses on the day reach almost 8%.
“The increase in soybean stocks in Chinese ports, the increase in bran stocks and the improvement in the weather in the US, in addition to the increase in the margin call at DCE explain the strong downward movement. Margins in China are under strong pressure, reinforcing the downward movement in CBOT, and also on the premiums in Brazil”, informs the consultancy.
As Marcos Araújo, an analyst at Agrinvest, explained in an interview with Notícias Agrícolas last Tuesday (21), soybean meal stocks in the Asian nation went from 300 thousand tons in March to more than 1 million now.