On Friday afternoon (2), soybean futures traded on the Chicago Stock Exchange accelerated their declines and the March/24 contract once again lost US$12.00, being quoted at US$11.94 per bushel. At around 1:45 pm (Brasília time), losses varied from 9.25 to 10.25 points, with May reaching US$ 12.04 per bushel.
Traders continue to monitor the movement of investment funds, while monitoring weather conditions in South America – with many warning signs lit for Argentina and the harvest there starting to deteriorate in some regions – and also demand slower at this time.
The greater competitiveness of Brazilian soybeans is another factor putting pressure on CBOT prices. Cheaper, the national oilseed has been decreasing demand for the product in the United States, which was reflected in the weekly export sales bulletin that the USDA (United States Department of Agriculture) brought yesterday, with sales of just 164 thousand tons in the last weekly.
“Brazilian soy is very cheap. Last week we sold three boats, probably more than that, because the Brazilian account was very good. This is because American soy in the interior is expensive and our soy is very cheap”, says the market analyst Eduardo Vanin, from Agrinvest Commodities.
More than that, Vanin also states that, at the end of the week there are still some rumors that sales are also being made from Brazil to Argentina. “There is talk of two boats now for February. Brazil exporting to the USA, now to Argentina and also other destinations, such as Mexico. Mexico, the traditional buyer of American soybeans, is doing calculations for the March-April window. All of this It negatively affects the American export program and soybeans follow along”, he explains. “American soybeans have to become cheaper or Brazilian soybeans more expensive.”
The analyst also reports information on Chinese demand, which may now be experiencing its worst moment, on the eve of the Lunar New Year holiday. “Let’s see what happens in this market after this holiday, which starts on the 10th.”
Furthermore, the pressure also comes from derivatives, with soybean oil losing more than 1.7% this afternoon on the CBOT, being quoted at 44.82 cents per pound.