Soybean prices started the week with significant declines on the Chicago Board of Trade (CBOT). As of 7:25 AM (Brasília time), futures had dropped between 10.75 and 16.50 points, with July contracts trading at $11.76 and November contracts at $11.12 per bushel. This decline mirrors losses across other markets, including soybean meal and oil, both down more than 1%, as well as wheat and corn.
The price drop is primarily attributed to favorable weather conditions in the United States, which continue to support the healthy development of the new crop. Over the weekend, light rains were reported in eastern states, with moderate to good rains in the Delta and northern states like Wisconsin, Minnesota, and much of the Dakotas. According to the GFS model, forecasts for the next 10 days predict moderate rains for eastern states and dry conditions for Missouri, Iowa, Minnesota, Nebraska, and the Dakotas.
Ginaldo Sousa, General Director of Grupo Labhoro, noted that Tropical Storm Berly is not expected to significantly impact U.S. crops, potentially benefiting dry areas in the central plains and Tennessee Valley instead. Additionally, normal temperatures in the Midwest are favorable for corn, which is mostly in the pollination stage.
Traders will be closely watching the USDA's weekly crop progress report, scheduled for release this Monday at 5 PM (Brasília time), as well as monitoring U.S. and Brazilian export programs, the movement of the dollar, and its impact on Brazilian trade.
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