Soy: overview of the week in the country - 23/12/2022

The week in the soybean market was marked by correction movements, without many variations ending Friday (23) operating at around US$ 14,75 per bushel.

The week started with low prices. After intense falls, soybean futures opened on Tuesday (20) trading at a high on the Chicago Stock Exchange (CBOT). The increases occurred timidly throughout the day, but reached up to 22 points in the main maturities. The increase did not only occur in the grain, but also in derivatives (bran and oil), with gains of more than 1,5%, causing the price of soybeans to also be boosted.

On Thursday (22), the soybean market intensified its declines and ended the day with losses of up to 13 points in CBOT contracts.

Finally, Friday (23) began with correction movements.

Soybeans in the futures market

Traders' focus is still concentrated on the weather conditions in South America, especially in Argentina. Some maps indicate good chances of rain between the Christmas and New Year period for all of Argentina. However, the relief may be momentary, as some forecasts indicate drought and heat. With this in mind, the fuel for the rise in soybean prices on the Chicago Stock Exchange continues to be the adverse Argentine climate.

Due to the instability of the volume to be produced by Argentina in the 2022/23 harvest, supply for the 2021/22 harvest is already scarce; internal and external demands for soybean meal are increasing. All of this means that the price of bran remains high in the Brazilian market. Expectations are that Chinese demand for bran will probably shift to Brazil.

For the market to make the next moves, it needs new news about what the climate forecasts will be like in South America. Furthermore, the market is paying close attention to the developments regarding COVID-19 in China, the increase in the number of deaths due to disease and the behavior of agricultural commodities in the Chinese futures market.

Tarken quotes by country

• Smile – MT: R$ 163,29

• Rio Verde – GO: R$ 166,82

• Maracaju – MS: R$ 166,14

• Uberlândia - MG: R$ 164,63