The recent rains and floods that hit soybean crops in Rio Grande do Sul contributed to the increase in soybean prices on the Chicago Stock Exchange.
Soybean contracts expiring in July, which have greater liquidity, registered an increase of 2.78%, equivalent to 33.75 cents, closing at US$ 12.4875 per bushel.
Official estimates on crop losses in the state have not yet been released, but a preliminary analysis by consultant Carlos Cogo indicates that the area of soybeans still to be harvested could represent a loss of 6.5 million tons. The market is concerned about the impact of these losses on supply.
In a separate commentary, Arlan Suderman of StoneX highlighted that while rains have an influence, they are not the only factor driving the rise in soybean prices.
Summit’s Tomm Pfitzenmeier cited additional concerns related to the disruption in soybean processing in Argentina and possible planting delays in the United States.
He also noted that technical factors and significant short fund positions in corn and soybeans have contributed to the uptrend.
Corn quotes
In addition to soybeans, corn prices also showed an increase on the Chicago stock exchange. Contrary to bearish expectations, prices for corn lots for July rose 1.9%, or 8.57 cents, reaching US$4.69 a bushel.
This increase comes even after the United States Department of Agriculture (USDA) reported a reduction in corn shipments from 1.3 million to 1.29 million tons in the week ending May 2.
Wheat prices also rose sharply, with July contracts rising 4.22%, or 26.25 cents, to US$6.4875 a bushel.
The wheat market remains attentive to favorable weather conditions in Russia and the US, as well as the geopolitical situation involving Ukraine and Russia, especially following recent statements by Russian President Vladimir Putin regarding nuclear testing.
