Soybean prices traded on the Chicago Board of Trade continued their upward trend from the previous session and remained in positive territory. By 9:40 AM (Brasília time) on Monday (17), prices had risen between 3 and 9 points, bringing August to $10.99 per bushel, having tested $11.00 earlier. The November contract, a reference for the American crop, was quoted at $10.46 per bushel.
In addition to adjustments following recent significant losses, the CBOT market is also supported by news of slightly more active Chinese demand in the U.S. market. "There are rumors circulating that Sinograin, the Chinese state-owned company, is purchasing U.S. soybeans, with reports of purchases for October shipment in the Gulf and PNW (Pacific Northwest) ports."
Similarly, Agrinvest Commodities adds that the U.S. is not the only source of soybean sales to China, noting significant premiums for Brazilian sales as well. "For now, Sinograin is buying American soybeans, while private crushers in China continue buying from Brazil. However, I would say they will start splitting their purchases," said Eduardo Vanin, market analyst at the consultancy.
In addition to demand, attention is focused on the weather in the U.S. Midwest. Conditions are cooler and wetter, which do not pose serious threats to the new crop but keep the market on alert.
"The GFS model, generated this morning, indicates total volumes up to 65 mm in the southeastern U.S. and Delta states by Sunday. Over the next 10 days, moderate accumulations are expected in these regions, as well as in southeastern Kansas, eastern Southern Plains, and Ohio.
The European model, generated overnight, differs from the GFS by predicting dry weather in the Corn Belt, with higher volumes in the southeastern U.S., Mississippi, and Louisiana," said the director of Labhoro.
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