The market underwent a technical correction after falling in the previous three sessions
Emily A. Vieira
01/02/2024
On the Chicago Stock Exchange, soybeans closed higher due to uncertainty in South America, according to information released by TF Agroeconomic. “The soybean contract for March24, the next date traded in the USA, closed up 2.05%, or $24.50 cents/bushel at $1218.75”, he comments.
“The price for May24, a reference for the Brazilian harvest, closed up 1.89% or $22.75 cents/bushel at $1227.75. The soybean meal contract for March closed up 2.46% or $8.7 ton short at $363.0 and the soybean oil contract for March closed up 0.99% or $0.45 /lb-pesoa $46.00”, he adds.
The market underwent a technical correction after having retreated in the previous three sessions, accumulating a loss of 3.71% in the period and breaking the level of US$ 12 per bushel, the lowest value since November 8, 2021. “South
America continues to give grain support. After a good start to the harvest in Argentina, with favorable weather, heat waves in the country raised alarm bells among operators. However, this fact is unlikely to reverse the voluminous Argentine soybean harvest”, he indicates.
“In Brazil, private companies are presenting new harvest projections. XP Investimentos reduced its estimate for Brazil by 1.8 million tons. Datagro also revised its projection, to 148.5 million tons. Aprosoja has the lowest estimate, with 135 million projected. All of these companies show lower data than ocial bodies, such as USDA, with 157 million tons, and Conab, with 155 million tons”, he informs.
The Buenos Aires Grains Exchange (BCBA) made an adjustment to the estimate of the area planted with soybeans in Argentina, adding 200 thousand hectares. “Thus, the area of this legume expanded to 17.3 million hectares and, consequently, the production projection rose to 52.5 million tons. The rains of the previous weeks made it possible to recharge the soil profiles and plant new lots of soybeans”, he concludes.
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