Dragged by the negative trend in Chicago, which pierced the floor of the last 2 years, the local price of soybeans closed this Friday at $265,000 per ton in the available segment and had a weekly loss of $5,000 (1.85%).
“The local market exhibited a limited level of activity, with purchase offers that remained stable for available soybeans. For merchandise placed in the Up-River terminals, $265,000 per ton was repeated, while for specific coverage, $267,000 to $270,000 could be obtained, compared to $274,000 last Friday,” explained the head of Research at the Zeni brokerage. Eugenio Irazuegui, about what happened during this day.
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At Matba Rofex, immediate contracts rebounded to $270,000 per ton. Regarding harvest positions, futures for May 2024 fell to US$288.20 per ton.
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The downtrend of soybeans continues in Chicago
In Chicago, soybeans lost US$5.60 and were quoted at US$436.70 per ton in the contract with delivery in March. Compared to the previous Friday, the oilseed fell by US$7.63. That is, 1.72%.
“Extending the bearish behavior of the previous day, the soybean market once again positioned itself in the 27-month low zone. Harvesting is becoming fluid in Brazilian territory and the replenishment of humidity favors the development of crops that are still going through the reproductive stages,” commented the analyst.
Closing of the local market this Friday. (Source: Zeni)
Almost a fifth of the cultivated area in Mato Grosso has been harvested, while the pace was accelerating in Paraná, which has completed 12% of the hectares planted in the state.
A little further behind are the states of São Paulo, Minas Gerais and Goiás, whose progress ranges between 5% and 9%.
“On the other hand, the prolongation of dry and excessively hot days in Argentina generates some caution regarding production estimates. However, meteorological forecasts reaffirm that water supply would appear in the middle of next week, along with a moderate decrease in temperatures,” he highlighted.
For the period between Friday, February 9 and Thursday, February 15, generalized contributions are expected, with greater emphasis on sectors of Córdoba and eastern San Luis. In this context, prices ended below US$ 437 per ton.
Closing of the Chicago market this Friday. (Source: Zeni)
On the other hand, corn ended the last round of the week with an average drop of US$1.20 per ton.
Aside from the reasons associated with the formation of the South American campaign, the agricultural attaché of the United States Department of Agriculture (USDA) in China foresees a slowdown in imports. The organization cut its forecast for purchases abroad by 2 million tons, which now places them at 20 million.
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“While American origins have gained competitiveness against the remaining exporters, the Asian nation has continued to close operations with Brazil. This gives the indication that the US would continue with abundant stocks for a while longer,” commented the analyst.
Finally, “modest advances” were recorded in wheat values, which ended at US$220.37.
“A few days after the physical inventory count in Canada was released, the surveys prior to the official publication were known. The average indicates that, at the end of 2023, the stored cereal would reach about 20.70 million tons,” Irazuegui explained.
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If this figure ends up being corroborated, it would be a retraction of 10.7% compared to the same date of the previous year.
“Meanwhile, the government authorities of Pakistan communicated the suspension of imports by the state agency, arguing that the country has sufficient reserves and domestic flour prices maintain a stable trajectory,” Irazuegui concluded.