Soybean futures are maintaining the positive momentum from the previous session as they remain on the uptrend on the Chicago Stock Exchange this Thursday (21). At around 9:50 am (Brasília time), prices surged from 4.50 to 4.75 points, with May contracts valued at US$ 12.14 and August contracts at US$ 12.24 per bushel. Additionally, soybean meal experienced an uptick of almost 1% during the morning session at CBOT.
One of the driving factors behind these market movements is the repositioning of funds, allowing for price recovery. Simultaneously, the market is closely monitoring the recent heavy rains in Argentina, which have been particularly severe and destructive. These weather conditions have contributed to the significant increase in soybean prices since Wednesday (20).
Eduardo Vanin, an analyst at Agrinvest, highlights the impact of the rainfall in Argentina, stating that the past 15 days have seen persistent heavy rain, culminating in a downpour in the main producing provinces. Meteorologists have issued warnings indicating potential flooding, which could result in significant damage to soybean crops in certain regions. However, Vanin notes that it is still premature to assess the full extent of the damage, pending the release of the next week's Buenos Aires Cereal Exchange report.
Vanin emphasizes that despite the adverse weather conditions, it is too early to label the soybeans as 'lost'. The damaged soybeans, when combined with high-quality ones, can still be processed into bran and oil.
Furthermore, the excessive rainfall in Argentina has not only impacted crop yields but has also disrupted logistics, contributing to the support for soybean complex prices on the CBOT.
Meanwhile, market attention remains divided between the ongoing harvest in Brazil, demand dynamics, and anticipation for the forthcoming area data from the USDA (United States Department of Agriculture) expected next week.
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