Soybean rebounded 3.6% from 12-year low in Chicago

The future of theSoy bounced back on Tuesday with the strength in the Chicago market, amounting 3.6% or $ 10.66 above the Monday closing in which he had hit the lowest value in 12 years.

So the most active contract, July 19, closed yesterday at $ 305.5 per tonne on the world's leading commodity market.

"The price collapse (in Chicago) buyer interest activated for North American soybeans, "they considered the Zeni grain corridor when badessing the recovery.

In this sense, in the previous at the beginning of the wheel, they met US soybean sales reports for 180,000 tonnes to be shipped between what remains of this month and next August.

However, a lot of the improvement was related to the decision to hedge funds rearming positions soybeans after the strong sales they had made in the last six weeks.

The Hedge funds sold in soybean at record levels since 2012 and, after the minimum Monday, they came back to take positions, although very cautiously since the The fundamentals market are far from changing short term.

While there is a big delay, by 20 percentage points, in the planting rate of the new campaign of United States, the the high stocks of the old crop and the prospect that Washington's trade war with China will not be resolved medium term lower the citations.

"Those areubas does not change the landscape of supply and demand of the current campaign. It is more difficult to quantify than affects more Chicago if the conflict with China or the huge stock of soybeans they will have from September 1 of this year in the United States, "said Josè Frogone, an badyst at Cortina Beruatto, a grain broker.

According to the calculations of the North American Department of Agriculture (USDA), the end stockcountryside It would be 27 million tonnes.

To measure the magnitude, this volume involves half of an Argentine soybean harvest.

Aother than the surplusIn the case of oilseeds from North America, stocks in South America are less abundant than those of the previous year. Brazil expects a production of 117 million tons. In Argentina, badysts already speak of a total volume of 57 million tons. tons, or 2 million more than the last calculation of Usda.

Local contagion

The Price rally in Chicago eased local market. Although Argentine soy is quite decoupled (very slight declines or minimal improvements) of the collapse of the reference market, this Tuesday a contagious bullish effect.

So the May position ended with a 3.4% improvement or $ 7.5 US $ 223 per tonne, while the November contract was US $ 237 per tonne, an increase of nearly US $ 6 from the previous closing.

They have also been registered significant movement of the record of sales abroad, taking advantage of low FOB valuess.

During the day, exports were recorded (to be done at different times of the year) by 237,000 tons of soy unprocessed, 1.59 million tons of flour of soy and 53,000 tons of oil of soy.

So in the countryside, DJVE accumulates in soy and flour for 14.8 million tons, of which 9.4 million correspond to the by-product star. This volume is equal to one 26.6% of the expected total harvest.