The soybean market extends the previous session’s gains and operates higher on the Chicago Stock Exchange this Friday morning (3). Prices rose from 6.75 to 12 points, recovering US$ 12.00 per bushel in the most traded contracts, reflecting a combination of factors, including the intense rain in Rio Grande do Sul. Around 7:10 am (Brasília time) , May was worth $12.02 and July and August were $12.06 per bushel.
The floods in the state of Rio Grande do Sul bring concern and volatility to the market, since there is still just over 30% of soybean area to be harvested in the state and the question now is how big the drop will be. All the logistical problems also raise major concerns, since Rio Grande is one of the busiest ports in the country, an important outlet for Brazilian oilseeds.
The first two maps show the rain forecast for May 3 to 11 and, subsequently, for May 11 to 19, confirming more volumes being expected for Rio Grande do Sul in the coming days.
The climate in the USA and the forecast of intense rains there are another factor to pay attention to, since if confirmed, they could reduce the pace of planting in the country. See the map indicating precipitation for the next 7 days:
Likewise, traders are also monitoring the behavior of derivatives, paying special attention to bran in recent days. After an increase of more than 4% in the previous session, more gains exceeding 1% in the CBOT were recorded once again this Friday morning.
“The bran market in South America is going through a perfect short-term short squeeze. In Brazil, margins are bad and talk of an early maintenance shutdown is growing. The crop failure in Rio Grande do Sul and the problems logistics may reduce external and internal availability in the short term. In Argentina, strikes that may return next week and low farmer sales are important factors.”
See how the market closed this Thursday:
By: Carla Mendes | Instagram @jornalistacarlamendes
Source: Agricultural News
