Chicago plummeted even with indications of soybean shortages in Brazil; see the quotes

Soybean

Brazil

United States

Market & Price Trends

Published Jan 18, 2024

Tridge summary

The soybean market in Brazil experienced slow business with limited batches aimed at the industry, impacted by the strong drop in Chicago and weak upward movement of the dollar. Concerns about the Chinese economy and a large supply of South American soybeans entering the market weighed on prices, leading to financial risk aversion. As a result, soybean grain contracts for delivery in March closed down 1.75% at US$12.05 3/4 per bushel, with the commercial dollar ending the session up 0.10% at R$4.9295 for sale.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

The soybean market recorded very slow business in Brazil this Wednesday (17), aimed at the industry, but in limited batches. According to Safras Consultoria, the strong drop in Chicago and the weak upward movement of the dollar ended up impacting prices in the states. Soybean futures contracts traded on the Chicago Board of Trade (CBOT) closed Wednesday with prices falling sharply, close to the lowest levels in almost two years. In addition to the favorable climate for Brazilian crops, the expectation of a large Argentine harvest and concerns about the Chinese economy weighed on prices. Closing the negative scenario, financial risk aversion increased and put pressure on agricultural commodities. Despite some alarming indications for Brazil's harvest - such as Aprosoja's forecast of 135 million tons -, agents are working with a large supply of South American soybeans entering the market. Even with the drop in Mato Grosso, most forecasts, such as Safras, indicate production close to ...

Source: CanalRural