Derivative futures seek breathing space after plunge; Favorable climate in the USA, however, limits gains
After starting the day working in a negative field, soybean prices rose again on the Chicago Stock Exchange. The highs, around 12:30 pm (Brasília time) this Wednesday (1), were 5.50 and 8.50 points in the most traded contracts, with May being quoted at US$ 11.54 and July at US$ $11.70 per bushel.
In part, the support for grain futures and the market reversal on the CBOT is due to oil recovering after the previous session’s plunge and rising again. The most traded positions rose almost 1%, recovering part of yesterday’s losses.
The market, despite this, still feels the pressure that comes from another combination of factors. Among them the advance of planting and the good weather conditions in the USA, the still weakened demand for American soybeans, China on holiday until Friday – also leaving the market empty – and the recent rise in the dollar.
Yesterday, the rise of the American currency weighed on all commodities, with investors seeking protection on a day of high risk aversion, waiting for new information that could move the markets even further. The Federal Reserve’s decision on US interest rates is one of the most anticipated, once again.
In Brazil, markets do not operate due to the Labor Day holiday. Thus, the dollar reference against the real is also missing, however, the dollar index works with stability, moving sideways with the holiday extending to other parts of the world.
By: Carla Mendes | Instagram @jornalistacarlamendes
Source: Agricultural News
