Soybean prices continued to decline on the Chicago Board of Trade this Monday, intensifying losses, especially in longer-term contracts, which fell below $11.00 per bushel. By 1:15 PM (Brasília time), prices had dropped between 20 and 31.50 points, with August trading at $11.43 and November, a key reference for the Brazilian harvest, at $10.98 per bushel.
These declines are driven by favorable weather conditions in the United States, which are supporting the good development of the new crop. The past weekend provided suitable conditions for American fields, and forecasts suggest continued favorable weather for the season.
Corn leads the losses in Chicago, plunging over 4% and trading below $4.00, which puts additional pressure on soybean and other grain prices. Wheat also saw losses exceeding 3%. "Beneficial weather is expected in the US in the coming days, improving the condition of American crops," explains Agrinvest Commodities. Additionally, the slow pace of US export programs also weighs on grains, particularly soybeans.
The week begins with significant declines in soybean prices traded on the Chicago Board of Trade. Market analyst Eduardo Vanin of Agrinvest Commodities explains that the market is giving back gains from previous days, reflecting expected weather improvements in the US and weak demand for US soybeans, which remains concentrated in Brazil.
"The uncertainty lies in the upcoming season's program, with the USDA projecting 49.7 million tons, higher than the current season, which started strong but has not maintained its pace. The market questions why the USDA projects growth in exports if Brazil is cheaper both for the spot market and the new crop," Vanin details. Furthermore, this week's market activity includes position adjustments ahead of the USDA's new monthly supply and demand report on Friday, which may revise down the export estimates for US soybeans for 2023/24 and 2024/25.
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