The soybean market on the Chicago Board of Trade (CBOT) continues to operate with stability during Wednesday's session, testing both sides of the price board. As of 1:50 PM (Brasilia time), soybean prices are slightly up by 0.75 to 2 points, with the September contract priced at $10.13 and November at $10.22 per bushel. At the same time, oil prices are rising, while meal prices are declining.
Soybean meal, which had earlier gained over 1.8% in Chicago this Wednesday, has reversed its course and is now down nearly 0.9%, priced at $315.20 per short ton.
Soybean oil, however, remains slightly up by 0.1%, reaching 41.97 cents per pound.
Currently, prices do not have significant factors supporting a strong upward trend but are experiencing a correction as traders become familiar with the existing market conditions.
Current Market Conditions
The Midwest's favorable weather continues to support the progress of the 2024/25 crop, and the demand for U.S. soybeans remains sluggish, which is the market's central focus at the moment, at least in the United States.
"After opening in the positive, futures contracts lost momentum as the Chicago day market opened. Low climate risks and demand continue to put pressure on Chicago prices," states the report from Pátria Agronegócios.
According to information from the Commodity Weather Group (CWG), issues in the Corn Belt are only sporadic, with less than 15% of the U.S. Midwest currently experiencing drought. The next 11 to 30 days are expected to be favorable, with good moisture levels.
Factors Impacting the Market
Weather Conditions: Favorable weather in the Midwest is promoting good crop progress. With less than 15% of the region experiencing drought, the weather is expected to remain conducive over the coming days.
Demand Dynamics: The demand for U.S. soybeans is still slow, and the market is closely watching any shifts in buying interest, particularly from key global players.
Soybean Meal and Oil Prices: The decline in soybean meal prices and the slight increase in soybean oil prices reflect the ongoing adjustments as the market reacts to known factors.
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