Global Courant
The price of soybeans rose sharply today in the Chicago market, adding almost US$30 during the session after knowing new planting estimates from the United States Department of Agriculture (USDA) in that country.
The price of the July contract jumped 5% (US$27.28) to US$572.19 a ton, while the August contract price jumped 5.42% (US$27.28) to conclude the day at US$ 529.84 a ton.
The fundamentals of the rise lay in the estimate by the USDA of a lower estimate of the area destined for cultivation in the North American country, as well as quarterly stocks below what the market expected.
Indeed, the agency “surprised” the market by estimating the area planted with soybeans at 33.79 million hectares in the 2023/2024 campaign, a figure that was 4.76% less than the 35.48 million hectares forecast. by private ones and 4.57% lower than the 34.41 million projected in March.
“With this novelty, the record of 122.74 million tons of soybeans projected by the USDA leaves the menu of options for the market,” explained analysts from the Granar brokerage.
To this situation was added as bullish data a volume for soybean stocks as of June 1 in the North American country of 21.65 million tons, which was below the 22.10 million forecast by private companies and the 26. 33 million at the same time in 2022.
“All this, added to the current dry conditions that affect large producing areas of the Midwest and the Great Plains, generated a buying rally by the large investment funds, with the consequent upward result,” the specialists detailed.
As news that finished consolidating the increases, the USDA reported during the day sales to China for 132,000 tons.
Its by-products also had strong increases, since oil rose 6.87% (US$92.15) to US$1,433.20 a ton, while flour gained 4.01% (US$17.86) and concluded operations at US$ 462.08 per ton.
The opposite occurred with cereals, especially for corn.
The yellow grain sank 4.56% (US$ 10.43) and was located at US$ 218.30 a ton, as a result of the USDA increasing the area covered with the cereal by 38.10 million hectares, a 2 .50% above the 37.17 million expected by private investors and, also, above the 37.23 million projected in March.
“The current data is 6.28% higher than the 35.85 million hectares covered in the previous campaign,” they highlighted in the brokerage.
“With this development, even with the current dry conditions over the Midwest and central Great Plains, the USDA estimated record 387.75 million tons is a real possibility,” they said.
Wheat fell 2.56% (US$ 6.15) and ended the day at US$ 233.78 a ton, matching the drop in corn, since the USDA report did not have a major impact on the cereal.
Source: Telam
