
The soybean market continued to trade in negative territory on Tuesday (Sept. 10) as losses intensified by early afternoon at the Chicago Board of Trade (CBOT). By 12:40 p.m. (Brasília time), prices had fallen between 18 and 18.25 points, with November contracts trading at $9.99 per bushel and March at $10.31 per bushel.
The market is adjusting after gains in the previous session, with traders preparing for new data from the U.S. Department of Agriculture's (USDA) upcoming supply and demand report, set to be released on September 12.
Additionally, prices are reacting to the latest USDA crop progress report, which showed that 65% of U.S. soybean crops remain in good or excellent condition. The report also noted that 5% of the U.S. corn harvest is now complete.
As the U.S. soybean harvest approaches, weather conditions in the Midwest continue to be closely monitored by market participants. The latest GFS weather model predicts more than 50mm of rainfall over the southeast of the U.S.
Midwest in the next five days, while moderate rain is expected in the Dakotas, western Iowa, and eastern Nebraska over the next ten days. The European model forecasts similar conditions, though it predicts a dry spell in northern parts of the U.S.
Meanwhile, Brazil’s weather is also in the spotlight, as a lack of rain may delay the start of the 2024/25 soybean season, particularly in Mato Grosso. These preliminary concerns are offering limited support to CBOT prices, though inconsistently.
Weather forecasts suggest that the heatwave will persist across Brazil, with temperatures remaining well above average through the end of this week.
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