
The drop in soybean prices in Chicago on Friday (22) exerted pressure on prices in Brazil, leading sellers to adopt a cautious approach and hold back transactions. Consequently, the Brazilian market remained stagnant, with minimal trading activity observed and prices experiencing negative fluctuations nationwide.
Soy in Chicago witnessed a significant decline in futures contracts traded on the Chicago Board of Trade (CBOT), culminating in a notable decrease in prices by the day's close. This downturn marked a week of accumulated losses for the contracts, following a period of reaching their highest levels since January 26. The market's decline was driven by a profit-taking movement, as producers capitalized on the favorable market conditions to sell their soybeans, contributing to the downward pressure on prices.
Analysts from the consultancy Safras & Mercado noted that this downward trend was supported by bearish fundamentals, particularly the robust South American harvest, which intensified competition in the market, especially among Chinese buyers, shifting demand away from the United States towards Brazil and Argentina.
Looking ahead to the following week, market attention is anticipated to focus on the planting intention report from the United States Department of Agriculture (USDA), scheduled for release on Thursday (28). Initial market sentiments suggest an expected increase in the planting area, with the current scenario favoring oilseeds over corn despite the recent price drops.
In terms of futures market quotes, soybean contracts for delivery in May closed down by 19.50 cents, or 1.6%, at $11.92 1/2 per bushel, while the July position experienced a loss of 20.25 cents or 1.65%, closing at US$12.05 1/2 per bushel. Additionally, the May bran position ended the day with a decrease of US$5.20 or 1.51%, settling at US$339.10 per ton. In the oil market, contracts expiring in May closed at 47.64 cents, down by 1.15 cents or 2.35%.
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