There was little fluctuation in the soybean market on the Chicago Stock Exchange this Tuesday (7/5), with the focus of market agents returning to harvest conditions in the USA. Oilseed lots for July closed down 0.18%, at US$ 12.4650 per bushel.
If previously the market’s attention was on the effects on soybean crops in Rio Grande do Sul, where producers are still counting losses due to the rains, now the market is once again looking at the conditions of the harvest on American soil.
“Prices have been losing strength, a sign that the losses in soybeans caused by the rains are beginning to be absorbed. As a result, agents now liquidate their positions”, says Vlamir Brandalizze, independent market consultant.
Amid the floods that damaged agricultural areas, the rains resulted in losses of R$6 billion for soybeans in Rio Grande do Sul, according to calculations made by Brandalizze.
Now, according to the analyst, the market’s concern is again focused on the progress of the 2024/25 soybean harvest in the United States.
The planting of the new crop reached 25% of the area by last Sunday, a delay of five percentage points compared to the same period last year. Despite the delay, sowing is above the average of the last five years, which reaches 21%, according to the American Department of Agriculture (USDA). “Despite little progress, the forecasts are that the weather will improve in the coming days”, highlights Brandalizze.
Corn and wheat
Corn and wheat closed lower on the Chicago Stock Exchange, after investors pocketed profits in light of recent increases in trading. In the case of corn, contracts for July fell 0.43%, quoted at US$4.67 a bushel.
The market ignored the delay in American corn sowing for the 2024/25 cycle. Planting reached 36% of the area by last Sunday. A year ago the percentage was 42%, while the average for the last five years was 39%.
However, as the forecast calls for rain for the American grain producing belt, prices tend to fall in the short term.
Regarding wheat values, the lots for July, the most liquid, closed down 0.92%, at US$ 6.4275 per bushel.
In addition to an achievement, the improvement in winter crop conditions in the USA was also negative for the share price. Plants classified as good and excellent conditions increased from 49% to 50% in the last week. This scenario, combined with the forecast of rain for American producing areas, calmed market sentiments after a rise that exceeded 4% the day before.
