USA: CBOT soybean prices rise on Brazil drought fears

Published Sep 19, 2024

Tridge summary

Soybean futures on the Chicago Mercantile Exchange rose due to concerns about hot, dry weather in Brazil, a major producer, which could threaten soybean plantings. Despite a delay in Brazil’s rainy season reducing moisture levels in some areas, their statistics agency still forecasts a 12.8% increase in the country’s soybean harvest. Meanwhile, corn futures also rose, and canola futures continued to show positive momentum. The U.S. Federal Reserve announced it would cut its key interest rate by half a percentage point, which also impacted the financial markets.

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Original content

Soybean futures on the Chicago Mercantile Exchange rose Wednesday amid a round of short selling fueled by concerns about hot, dry weather in Brazil, the country’s largest producer, that could threaten soybean plantings, traders said. CBOT November soybean futures rose 8 cents to $10.14 a bushel. CBOT December soybean meal futures fell 10 cents to $321.40 a short ton, while December soybean oil futures rose 43 cents to settle at 40.31 cents a pound. A delay in Brazil’s rainy season has reduced moisture levels in parts of the country, including Mato Grosso, one of Brazil’s largest soybean-growing states, Maxar said in a research note. However, Brazil’s statistics agency Conab on Tuesday still forecast the country’s 2024/25 soybean harvest at 166.28 million tons, up 12.8% from the previous season. Traders say the lack of rainfall will not be a warning sign unless the drought extends into October, which could seriously delay soybean planting. Traders are closely watching the progress ...

Source: Oilworld