Brazil: Commodities feel the weight of risk aversion with the new collapse of US banks, soy drops 1%

Published Mar 13, 2023

Tridge summary

The agricultural and oil commodities markets experienced a surge in risk aversion on Monday following the bankruptcy of two major American banks, Silicon Valley Bank and Signature Bank. This led to significant losses in soybean markets, with the Chicago Stock Exchange seeing double-digit declines, and oil futures also suffering a nearly 5% drop. However, some commodities like cotton saw gains. The situation has sparked concerns about the future of the Federal Reserve's interest rate policy and the potential for a slowdown in its monetary tightening. The fallout from this banking crisis is expected to have far-reaching implications for various markets and economies, underscoring the need for increased caution and vigilance amidst the uncertain economic landscape. In Brazil, the focus is on the decline in soybean premiums, indicating market adjustments in response to these global developments and the broader economic environment.

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

Original content

Risk aversion took hold of business among commodities this Monday (13), mainly agricultural and oil, reflecting the concerns that came from the weekend with the announced bankruptcy of two major American banks, Silicon Valley Bank and the Signature Bank. "The markets were very attentive to the macroeconomic scenario of risk aversion after the break of the SVB last week", warned the team of Agrinvest Commodities. On the Chicago Stock Exchange, the soybean market deepened its decline and started to operate with double-digit losses among the main maturities, ending the day with losses of 13 to 17.25 points, leading the market to, once again, lose the level of $15.00 per bushel. May ended the day at US$ 14.91 and July at US$ 14.79. Soybean meal and oil futures ended this week's first trading session losing more than 1%. Throughout the day, especially in the morning, the losses among other commodities were even more intense, with oil leading the retreat, losing almost 5%. However, the ...

Source: NoticiasAgricolas