Yellow light: international soybean price has lost more than $ 30 as US markets reopen

After shutting down yesterday due to Independence Day in the United States, the Chicago market has resumed operations today with sharp drops in international soybean and grain prices.

Regarding the contract expiring this month for soybeans, the price fell by $ 32.33 and was listed at $ 501.09 per tonne. For its part, the same corn contract maturity, operated with losses of 16.24 USD and traded at 258.26 USD, and that of wheat fell by 9.46 USD and the ton was paid at $ 227.81.

According to what was expressed by analysts in the grain market, the sharp declines, especially in soybeans and corn, were linked to the rains that were recorded during the weekend in the United States and the weather forecast with temperatures lower and lower precipitation in the regions most affected by the water deficit.

Ariel tejera, head of the market analysis department of the brokerage Grassi, recalled in a dialogue with this media that a rupture had occurred last week in the foreign market, following data provided by the US department of Agriculture which reflected a smaller soybean area and a very marginal increase in maize in that country, where 35.4 million hectares and 37.5 million hectares, respectively, were planted.

“On this basis, and given the low initial stocks, very good yields will be needed to ensure acceptable supply volumes. But, it must be taken into account that the conditions of soybean and corn crops are more degraded than last year for this period, which casts doubt on the possibility that the last yields achieved could be improved ”, he added. -he adds.

On the other hand, the analyst said that the climate in the United States is starting to take a prominent place and will be the key variable to watch over the next two months. “We should not rule out a very volatile scenario if, in addition, we consider that hedge funds could continue to be very active,” said the specialist.

Other notices

For its part, Josefina jolly, market analyst at FyO, said that The coming months are critical for the development of crops in the United States, the market will therefore closely follow the weather forecasts to accompany the good evolution for the definition of yields and any change in these will be reflected in Chicago.. “Keep in mind that we are coming from very high prices, with a lot of volatility present in the market which reminded us that it must be respected and that any unexpected factor can contribute to the movements,” he said.

Finally, the analyst assured that there were other factors that have influenced the prices in recent times. One of them was the issue of biofuels, which is no less important, because depending on the resolution of this conflict, the demand for biodiesel like ethanol could be affected and with it the consumption of soybeans and soybeans. But. In addition, hedge funds with positions bought in soybeans and corn at maximum levels (in the event of a bearish signal, they make the variation exponential). And finally, with the fall in prices, demand arose, with China buying soybeans from the United States, which already has an advanced pace in its soybean exports.

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