The price of the oilseed was influenced by the announcement of a stimulus to boost the Chinese economy, adverse weather conditions in Brazil, and the Federal Reserve’s 50 basis point cut in interest rates. Corn and wheat prices were unable to hold up and fell.
The Soybeans extended good performance This Tuesday, September 24, after China to announce wide-ranging stimulus measures to boost ailing economy.
The price of oilseeds is also influenced by adverse weather conditions. Brazilwhich is in harvest period, as well as the lowering of rates of the Federal Reserve by 50 basis points. The corn and the wheat They fail to maintain their position and go down.
The soy went up 0.3% in Chicago to US$382.95 per ton and touched two-month highs, while the corn fell 0.4% to $162.10 per ton and the Wheat fell 0.8% to $212.37.
After touching two-month highs, soybean prices cooled on profit-taking and Some forecast models predict much-needed rain in Brazil next weekwhich could strengthen soybean planting and harvest prospects.
Other traders to Reuters the lack of major soybean export sales announcements by the United States Department of Agriculture (USDA)given market rumors that Chinese buyers were booking U.S. supplies.
“Fears refer to the Brazil’s climate issuewhich are in the planting period and need rain. On the other hand, the drop in interest rates has an influence, which makes funds reduce short positions and can give a boost to prices. But, if one looks at the amount of soybeans there are in the world, we are in an oversupplied market, so it may be something short-term now due to these tensions. It would have to be a productive catastrophe in Brazil for prices to rise,” he explained to Scope Gonzalo AugustoChief Economist of the Economics Department of the Córdoba Grain Exchange.
China and a strong stimulus to reactivate its economy
China announced plans to cut borrowing costs and inject more funds into the economyto ease the burden on households of mortgage payments, while announcing that it would launch for the first time structural monetary policy instruments to help stabilise capital markets.
This is the biggest stimulus since the COVID-19 pandemic to revive the economy and bring it back closer to the government’s growth target.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
