Soybean market operating in positive fields

On the day of the release of the monthly supply and demand report from the USDA (United States Department of Agriculture), soybean prices on the Chicago Stock Exchange begin the day this Friday (09) rising from 4 to 5,25 points, already operating around US$ 15,00 per bushel. Throughout the week we followed the soybean market operating in positive fields with prices rising and today reaching the level of US$ 15,00 on the CBOT. Among derivatives, oils and bran, increases also continue.

In the last seven days, according to an investigation by Agrinvest Commodities, sales announcements by the USDA (United States Department of Agriculture) included large soybean negotiations, and most of them had China as the main destination.

The USDA reported soybean sales to China of 130 thousand tons on Monday (05). On Tuesday (06), there was another sale of 504 thousand, of this total, 264 thousand went to China and 240 thousand to undisclosed destinations. During Thursday (8) there were new negotiations from the USDA for China and other destinations for 836 thousand tons. There were 118 thousand tons for the Asian nation and 718 thousand for undisclosed destinations, which the market speculates to also be China. The volume is all from the 2022/23 harvest.

Effects on prices

All these sales to the USA expanded the market even more. Given this, soybean export numbers indicated increases beyond expectations. In addition to the good demand for exports in the USA, the week of highs in the soybean and derivatives market in Chicago was also due to the very adverse weather in Argentina, especially because the country is the largest global exporter not only of bran, but also of soy oil.

The market remains focused on Argentina's climate situation, which shows worrying signs due to the drought, according to studies, it is predicted that in the next 10 days the country will be the hottest place in the world, with temperatures above 45ºC, and the Losses in soybeans will be inevitable. After all, planting, which is already the worst in the last 20 years, is at a standstill in many areas and the best window is being lost.

Furthermore, attention also remains focused on China and the relaxation of Covid-19 containment measures. In addition, it is also necessary to continue observing the commercialization of soybeans in Argentina, with a new round of the specific exchange rate for the oilseed being valid since November 28th and valid until December 31st.

In Brazil, climatic conditions are better, with rainfall occurring across almost the entire territory, even with lower volumes in the south. Rainfall is irregular, also bringing this irregularity to the harvest, but without major concerns.