Soybean prices tumbled on the Chicago Board of Trade (CBOT) early Thursday afternoon (22nd), with losses ranging from 17 to 18.25 points around 12:20 PM (Brasília time). The November contract fell back to $9.63 per bushel, while March retreated to $9.97 per bushel. The soybean market is following the downward trend of wheat, which also fell nearly 2%, along with soybean meal (down 1.8%) and soybean oil (down over 0.8%).
"Soybeans are giving back much of this week's gains, with Pro Farmer results showing high productivity rates in the U.S.," said Ginaldo Sousa, general director of the Labhoro Group. On the other hand, positive weekly export sales and new announcements from the USDA (United States Department of Agriculture) on Thursday, including sales of soybeans, meal, and corn, help to balance the market despite today's losses.
The soybean market is also reacting to concerns over potential disruptions from strikes at two major Canadian railroads, which could impact not only Canadian grain shipments but also those from the U.S. "9,000 workers from the Canadian National Railway and Canadian Pacific Kansas City could trigger a railway strike, which would severely impact North American grain exports," reported Agrinvest Commodities. "The networks of both Canadian rail operators connect to several major U.S. rail and transport hubs, including Chicago, New Orleans, Minneapolis, and Memphis. CPKC's network also extends further south, connecting with ports on Mexico's east and west coasts," the consultancy added.
Additionally, a strong rise in the U.S. dollar in Brazil, pushing it back above R$ 5.50, is exerting further pressure on prices.
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