Soybean, corn and wheat prices rise on the Chicago Stock Exchange | Quotes

Grain prices rose on the Chicago Stock Exchange this Wednesday (3/4), mainly after technical movements by investors, who took advantage of the recent lows to resume purchasing futures contracts.

This was what happened in the case of soybeans, which advanced after five consecutive falls. Contracts for May advanced 0.70%, to US$ 11.8225 a bushel.

“We have a huge position of short contracts [apostando na queda dos preços], something that is not normal before the planting of American soybeans begins. It is natural that at some point they [os investidores] reduce their positions”says Etore Baroni, risk management consultant at StoneX.

Still according to him, soybeans followed the appreciation of other assets, such as coffee and oil, but at this moment it is awaiting new factors to define a price direction.

“There are no changes in terms of supply and demand fundamentals. As a result, agents must continue to monitor the progress of the Argentine harvest, the slowness of Chinese soybean purchases, low American demand and the beginning of planting in the country. Soybean prices should ‘move sideways’ in Chicago, as they don’t have much room for large variations”, adds the StoneX analyst.

Corn appreciated on the Chicago stock exchange, due to a technical adjustment and also the increase in demand in the USA. Contracts for delivery in May closed up 1.23%, at US$4.3175 a bushel.

The cereal’s recent declines on the stock market opened space for a rearrangement of investor positions. Furthermore, the rise in corn is explained by an increase in the supply of ethanol in the USA. Biofuel production grew 1.8% in the week ended March 29, totaling 1.073 million barrels per day.

Market agents use this data as a reference for the demand for corn in the United States, since the cereal is the main raw material for ethanol in the country.

Wheat closed the session with rising prices, also supported by technical movements by investors. Contracts expiring in May rose 1.97%, to US$ 5.56 a bushel.

In addition to the technical aspect, consultancy Granar says that the forecast of lower wheat supply in the European Union continues to influence the international market, after excessive rains have restricted planting in large producers in the bloc, such as France and Germany.

“This would compensate, albeit very partially, for another harvest that is expected to be very abundant, above 90 million tons, in Russia”, highlights the consultancy, in a report.