USA: Soybeans have a week marked by risk aversion in Chicago and a sharp drop in premiums in Brazil

Published 2023년 3월 17일

Tridge summary

The soybean market on the Chicago Stock Exchange faced a difficult week, with losses exceeding 2% due to financial market uncertainties and risk aversion. The May maturity contract fell by 2.06%, and the July contract by 2.3%. This trend is influenced by the anticipated large crop from Brazil and subdued demand, particularly from China. Additionally, concerns about soybean meal and oil offers persist, with Brazil potentially serving as a substitute. The financial situation and banking crisis in the US have further impacted prices, alongside the detection of African swine fever in China. Brazilian producers are facing falling premiums, with deals reaching up to 50 cents below bushel prices on the Chicago Stock Exchange for the May contract.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The week was very difficult for the soybean market on the Chicago Stock Exchange, in a movement that followed the other commodities, due to the pressure and the countless uncertainties that came from the financial market since last weekend. Risk aversion remained very present among businesses in international markets, reinforcing the weight of the crisis of confidence that took hold following the latest events in the US banking system and which was contaminating the most diverse sectors in the sequence. With all this, soybean futures on the CBOT ended the week with accumulated losses of more than 2% among the most traded contracts. The May maturity, an important reference for the current crop in Brazil, registered a loss of 2.06%, going from US$ 15.07 - last Friday (10) - to US$ 14.76 per bushel. In July it went from US$ 14.94 to US$ 14.60, in the same period, accumulating a fall of 2.3%. In this Friday's trading session alone (17th), soybean prices ended the day losing between ...

Source: NoticiasAgricolas