Soy continues to work at high levels at CBOT with an eye on adverse weather and delayed planting in BR

Soybean futures continue to operate in a positive field on the Chicago Stock Exchange in the early afternoon of this Monday (20). Gains varied between 7 and 8 points in the most traded contracts, taking January to US$13.48 and May to US$13.77 per bushel. Still in the soybean complex, at the CBOT, increases of more than 1% in soybean oil – which amounts to 51.88 cents per pound – follow the good increases that can also be seen in oil, helping to keep prices rising.

The adverse climate in South America, especially in Brazil, is on the markets’ radar. Conditions in Paraguay and Argentina are also in focus. “The delay in Brazilian planting has repercussions on the market and supports prices”, informs Pátria Agronegócios in its daily report. According to figures reported last Friday (17), Brazilian soybean planting this week reached 68.93%, compared to 80.16% in 2022 and 79.66% on average over the last 5 years.

“Planting progressed in a limited way throughout this week in the main producing regions. Better rains are expected in the coming days in the center-north of the country, which if confirmed should accelerate field work. For now, Brazilian soybean sowing continues registering delays compared to the average of recent harvests”, complement the experts from Pátria.

With this delay, all eyes are on climate forecasts. According to NOAA, the American government’s official climate service, the return of rain is expected for this week and, in the next 15 days, the main producing regions should receive good volumes.

The general director of Grupo Labhoro, Ginaldo Sousa, also draws attention to the presidential elections in Argentina that gave victory to Javier Milei on Sunday night (19).

“Argentina is Brazil’s largest partner in South America and is very important for our trade. I want to remember that Javier Milei’s victory is, in a way, bearish for CBOT. Why? Because the new president who takes office In December, it should treat Agro with more respect, reducing taxes and export fees”, he says.