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Soybean Market Tests New Lows on Tuesday, Driven by Wheat's 2% Decline

Writer's picture: Ipasai NewsIpasai News
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The grain market is experiencing another day of significant declines on the Chicago Board of Trade (CBOT) this Tuesday (29th), led by wheat, which has dropped more than 2% among the most traded contracts this morning. This downward trend has also pulled corn and soybean prices into negative territory, with soybeans falling over 1% in the main positions. The August contract is currently priced at $10.47 per bushel, while November is at $10.27.


Prices continue to reflect a combined scenario, particularly in the US, where a larger supply is evident due to the good development of the American crop, coupled with weak demand for US soybeans. Yesterday, the USDA (United States Department of Agriculture) reported a slight reduction in the rating of American soybean fields, although not enough to change the outlook for the new season.


The USDA's weekly crop progress report indicated that 67% of soybean fields are classified as good or excellent, down from 68% the previous week. The market had anticipated stability in this rating. Last year, at this time, only 52% were rated similarly. Currently, 25% of the fields are in fair condition, and 8% are in poor or very poor condition, compared to 24% and 8% the previous week, respectively.


Regarding soybeans, the report also highlighted that 77% of the fields are in the flowering stage, up from 65% the previous week, compared to 79% last year and a five-year average of 74%. Additionally, 44% of the fields are in the pod formation stage, up from 29% the previous week. In 2023, 46% of the fields were at this stage, with an average of 40%. The weather in the American Midwest remains favorable and is expected to keep the scenario relatively unchanged from what is already known about the crop.


Moreover, the market continues to closely watch the speculations regarding the potential removal of Argentina's soybean export taxes (retenciones), following President Javier Milei's reaffirmation of commitment to this policy during his visit to Argentina's largest agricultural fair over the weekend.

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