International soybean, corn and wheat prices rise during the holidays

In the first round of the week, following yesterday’s US vacation, Chicago’s benchmark market traded with increases for soybeans and grains. Activity in the local market will resume tomorrow.

Relevant data for the Chicago market was the increase in the price of wheat due to the effect of the frosts in the United States. The specialists of the specialized portal FyO They pointed out that the cold climate is concentrated in the south of that country and that so far losses have not been confirmed, with little snow cover crops had. Regarding grain prices, the March position increased by $ 6.61 and traded at $ 240.60.

For its part, Soybean contracts that expire next March increased by $ 3.77 and traded at $ 507.90 due to reduced inventories in the United States and harvest delays in Brazil.

While on vacation in Argentina, in the Chicago market, there was also news about the rising price of corn. In the global benchmark market, March contracts reached $ 4.53 and traded at $ 216.60. The main reason for the price increase is that demand for grain from the United States continues.

Over the past few weeks, China has become an important player in the corn market as its demand for yellow grains for animal feed increases. Purchases recorded a few days ago exceeded 3 million tonnes. These are numbers that until now had not been recorded in the export sector in the United States.

Local soybean and corn campaign

Meanwhile, soybean and corn production is progressing in our country, where the rains at the end of January and those recorded during this month have improved the harvest panorama. With this panorama, The Rosario Stock Exchange (BCR), through its Strategic Guide for Agriculture, has projected that there will be a national soybean harvest of 49 million tonnes and maize that will reach 48.5 million tonnes. They are 2 million and 2.5 million tonnes, respectively, an increase in estimates from last month’s report.

On the other hand, the Rosario Stock Exchange reported that over the past 14 days, soybean purchases for the 2020/21 crop year have accelerated sharply, surpassing one million tonnes sold in the two weeks. There has been a buying momentum in the industry, as it has acquired 88% of the beans traded in the past four weeks. Also, around 56% of what has been marketed so far has not set their prices.

For its part, corn purchases also recorded high purchase levels, due to market fears of possible government interventionist measures. Some 16 million tonnes were traded during the period analyzed.

The local wheat market

The marketing of wheat for the current season is progressing, reflecting a significant slowdown over the past two weeks, with a marked contrast between purchases by the exporting sector and those of the milling industry.

Rosario Stock Exchange economists reported that so far, out of a total production of 17.4 million tonnes and not counting the initial stocks of the buying sectors which would be around 2.5 million tonnes, the export has already purchased 8.8 million tonnes. A figure which would mean that the sector has almost covered the volume committed to marketing on the foreign market, which would reach 10 million tonnes.

The domestic demand for wheat, in charge of the flour mill, has so far bought only 1.38 million tonnes out of the 6.3 million tonnes which should be industrialized throughout the 2020/21 season.

“This level of purchasing is explained, in part, by the fact that it is an industry which does not work with high stocks and which makes progressive purchases as the grain is milled. . In this way, if the two sectors acquire the remaining grain to meet their commercial objectives (6.12 million tonnes), a slight decrease in final stocks would be expected during the 2020/21 cycle, ”they commented from RBC. .

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