US soybean futures fell to their lowest level since October on the first trading day of the year due to the improvement of the climate in Brazilthe world’s main supplier of the oilseed, analysts said.
The rise of the dollar also weighed on agricultural marketsas it makes American products less attractive to importers.
Corn futures fell to their lowest price since November, while wheat fell on the Chicago Stock Exchange.
Soybeans: the causes of the decline in Chicago
The rains in Brazil dragged down soybean futures, after hot, dry weather damaged crops in northern growing areas and prompted analysts to lower their harvest forecasts.
The agribusiness consultant StoneX cut its estimate for Brazil’s crop to 152.8 million metric tons from 161.9 million tons.
Traders are also monitoring the weather in Argentinawhere farmers made good progress in planting soybeans and corn after recent abundant rains.
The January oilseed contract fell 1.5% (US$7.17) to US$468.11 per ton, while the position March fell 1.9% (US$9) to end the day at US$467.93 per ton on the CBOT. In this way, it hit its lowest price since October 12.
Soy byproducts accompanied the decline of the bean, with a drop of 0.1% (US$2.95) in oil to US$1,053.57 per ton, while flour rose by 1.83% (US$7.83) to stand at US$417.66 per ton.
In turn, corn fell 1.6% (US$2.95) and stood at US$182.57 per ton, its lowest level since November 27, for reasons identical to that of soybeans, to which was added the abundant supply of American merchandise in the commercial circuit.
For its part, wheat sank 3.4% (US$7.81) to US$222.94 per ton, due to profit-taking by speculative funds after the 1% devaluation of the euro against the dollar, an issue that makes US exports less competitive.
Traders also remain vigilant about disruptions to trade in the Red Sea, as container ships avoid the route that gives access to the Suez Canal, following the attack on one of Maersk’s vessels over the weekend.
Source: Ambito
